[Translation]

Annual Securities Report(The 14th Business Term)
From April 1, 2017 to March 31, 2018

CYBERDYNE, INC.

This is an English translation of part of the Annual Securities Report (有価証券報告書).
Of the pages of Annual Securities Report translated in this documents, "Part I
Information on the Company V. Consolidated Financial Statements and Other
Information 1. Consolidated Financial Statements" were audited by Deloitte Touche
Tohmatsu LLC.
Annual Securities Report was filed to the Director of the Kanto Local Finance Bureau
via Electronic Disclosure for Investor's NETwork ("EDINET") pursuant to the Financial
Instruments and Exchange Act of Japan.

I. Consolidated financial statements and Notes to consolidated financial statements
1. Consolidated financial statements(i) Consolidated statement of financial position
As of March 31, 2018
Note

Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

AssetsCurrent assets
Cash and cash equivalents

7,31

18,462

13,378

10,820Trade and other receivables

8,31

573

379

385

Other financial assets

9,31

21,501

20,00220,004Inventories

10

450

527

565

Other current assets

11

Total current assets

77

119

32

41,062

34,40531,807

Non-current assets
Operating lease assets

12,17

462

480

401

Property, plant and equipment

12,16

5,084

10,603

11,339Intangible assets

13

66

66

90

14

－

－

474

Other financial assets

9,31

975

2,069

2,406

Other non-current assets

11

Investments accounted for using equity
methodTotal non-current assets
Total assets

- 1 -

96

88

81

6,681

13,307

14,79147,74347,712

46,598Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

16,31

19,926－－

Trade and other payables

18,31

252

197

274

Other current liabilities

20

204

370

386

20,382

567

659

14

－

Note

Liabilities and equity
Liabilities
Current liabilities
Convertible bonds with stock acquisitionrights scheduled for redemption within
one year

Total current liabilities
Non-current liabilities
Other payables

18,31

36

Provisions

19

91

91

91

Deferred tax liabilities

15

64

275

145

Other non-current liabilities

20

Total non-current liabilities
Total liabilities

29

29

29

220

408

265

20,602975

925

EquityShare capital

21,29

16,512

26,744

26,744

Capital surplus

21,29

16,331

26,49526,495

Treasury shares

21

(0)

(0)

(0)

Other components of equity

30,31

536

432

(65)

Retained earnings

21(6,227)(6,903)(7,476)27,151

46,76845,698

(10)

(31)

(24)

27,141

46,73745,67447,74347,712

46,598

Total equity attributable to owners of theparentNon-controlling interests
Total equity
Total liabilities and equity- 2 -(ii) 【Consolidated statement of profit or loss and consolidated statement of comprehensive income】【Consolidated statement of profit or loss】
Year ended March 31, 2018
Note
Revenue
Cost of sales

2017

2018

Millions of yen

Millions of yen

6,23

1,660

1,728

10,17,24

(587)

(523)

1,072

1,204

(901)

(834)

(1,361)(1,390)(2,262)(2,223)Gross profit
Selling, general and administrative expenses
Research and development expenses
Other selling, general and administrative expenses

17,24
17,24,
30,32

Total selling, general and administrative expenses
Other income

25

499

364

Other expenses

25

(7)

(4)

Operating profit (loss)

(697)

(659)

Finance income

26,31

59

13

Finance costs

26

(9)

(6)

14

－

(21)

(648)

(672)

(49)

(6)

(697)

(678)

Owners of parent

(676)

(673)

Non-controlling interests

(21)

(5)

Profit (loss)

(697)

(678)

Basic earnings (loss) per share (yen)(3.16)(3.13)

Diluted earnings (loss) per share (yen)(3.16)(3.13)

Share of profit (loss) of investments accounted for using
equity method
Profit (loss) before tax
Income tax expense

15

Profit (loss)
Profit (loss) attributable toEarnings (loss) per share

28

- 3 -

【Consolidated statement of comprehensive income】
Year ended March 31, 2018
Note

2017

2018

Millions of yen
Profit (loss)

Millions of yen
(697)

(678)

417

(394)

417

(394)

2

(12)

2

(12)

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income

27,31

Total of items that will not be reclassified to profit orloss
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations

27

Total of items that may be reclassified to profit or loss
Total other comprehensive income, net of tax
Comprehensive income

420

(406)

(278)

(1,084)(256)(1,076)Comprehensive income attributable to
Owners of parent
Non-controlling interests

(21)

(8)

Comprehensive income(278)(1,084)- 4 -(iii) 【Consolidated statement of changes in equity】
Year ended March 31, 2018
Equity attributable to owners of parent
Other components of equity

Note

Share capital

Capital surplus

Treasury shares

Financialassetsmeasured atfair value
through othercomprehensive
incomeExchangedifferences ontranslation offoreign
operations

Share
acquisitionrightsMillions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

April 1, 2016

16,512

16,331

(0)

－

－

536

Profit (loss)

－

－

－

－

－

－

Other comprehensive income

－

－

－

417

2

－

－

－

－

417

2

－
(530)

Total comprehensive income
Issuance of new shares

21

10,232

10,165－－－

Share-based payment transactions

30

－

－

－

－

－

6

10,232

10,165

－

－

－

(524)

March 31, 2017

26,744

26,495

(0)

417

2

12

Profit (loss)

－

－

－

－

－

－

Other comprehensive income

－

－

－

(394)

(9)

－

－

－

－

(394)

(9)

－

30

－

－

－

－

－

7

9,31

－

－

－

(100)

－

－

－

－

－

－

－

－

－

－

－

－

－

7

26,744

26,495

(0)

(77)

(7)

19

Non-controllinginterests

Total equity

Total transactions with owners

Total comprehensive income
Share-based payment transactions
Transfer from other components ofequity to retained earnings
Equity transaction with noncontrolling interest
Total transactions with owners
March 31, 2018

Equity attributable to owners of parent
Other
components ofequityNote

Retainedearnings

Total

Total
Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

April 1, 2016

536

(6,227)

27,151(10)

27,141

Profit (loss)

－

(676)

(676)

(21)

(697)

Other comprehensive income

419

－

419

0

420

Total comprehensive income
Issuance of new shares

21

Share-based payment transactions

30

419

(676)

(256)

(21)

(278)

(530)

－

19,867－

19,867

6

－

6

－

6

(524)

－

19,873－

19,873

March 31, 2017

432

(6,903)

46,768(31)

46,737

Profit (loss)

－

(673)

(673)

(5)

(678)

Other comprehensive income

(403)

－

(403)

(3)

(406)

(403)

(673)

(1,076)(8)(1,084)

30

7

－

7

－

7

9,31

(100)

100

－

－

－

－

－

－

15

15

(93)

100

7

15

21

(65)

(7,476)45,698(24)

45,674

Total transactions with owners

Total comprehensive income
Share-based payment transactions
Transfer from other components ofequity to retained earnings
Equity transaction with noncontrolling interest
Transfer from other componentsof equity to retained earnings
March 31, 2018

- 5 -(iv) 【Consolidated statement of cash flows】
Year ended March 31, 2018
Note

2017

2018

Millions of yen

Millions of yen

Cash flows from operating activities
Profit (loss) before tax

(648)

(672)

Depreciation and amortization

335

399

Loss on reduction of non-current assets

742－

Finance income

(59)

(13)

Finance costs

9

6

－

21

Decrease (increase) in inventories

(77)

(38)

Decrease (increase) in trade and other receivables

194

(6)

Increase (decrease) in trade and other payables

(56)

85

Other

130

157

570

(62)

Interest received

7

10Interest paid

(2)

(1)

Income taxes paid－－

Net cash provided by (used in) operating activities

575

(53)

Purchase of investments(20,000)(43,000)

Proceeds of redemption of investments

20,00043,000Share of loss (profit) of investments accounted for using
equity method

Subtotal

Cash flows from investing activities

Proceeds from withdrawal of time deposits

1,500

－

Purchase of property, plant and equipment(6,597)(1,077)Purchase of intangible assets

(18)

(48)

Purchase of investment securities(433)(1,563)

－

700

－

(495)

0

0

(5,548)(2,484)

Payments from issuance of shares

(88)

－

Other

(22)

(23)

Proceeds from sale of investment securities
Purchase of investments accounted for using equity
methodOther
Net cash provided by (used in) investing activities
Cash flows from financing activities

Net cash provided by (used in) financing activities

(110)

(23)

Net increase (decrease) in cash and cash equivalents(5,083)(2,558)18,462

13,378(1)

2

13,378

10,820Cash and cash equivalents at beginning of fiscal year

7

Effect of exchange rate changes on cash and cash
equivalents
Cash and cash equivalents at end of year

7

- 6 -

【Notes to consolidated financial statements】
1．Nature of operationsCYBERDYNE, INC. (the "Company") is a company domiciled in Tsukuba, Ibaraki, Japan. Location of the Company's
headquarters as well as its main offices are disclosed on the Company website, (http://www.cyberdyne.jp/english). The
accompanying consolidated financial statements comprise the Company, its group companies (with the Company,
collectively referred to as the "Group"), associates as well as jointly controlled entities and the fiscal year is from April 1
to March 31.
The Group utilizes Cybernics to work on the entire process from basic research of innovative technologies to theirsocial implementation, which could contribute to overcome various problems that modern society faces. At the same time,
the Group will continue its endeavors to create new industries and nurture human resources, in order to induce upward
spiral of innovation and to shape the future. The Group operates under a single segment of business related to robotics andit is detailed in "6. Segment information".

- 7 -2．Basis of presentation
1. Conformance of consolidated financial statements with IFRS and matters regarding the first time adoption
As the Group meets the requirement of "Specified Company Applying Designated International Reporting Standards"
pursuant to Article 1-2 of the "Ordinance on terminology, forms and preparation methods of consolidated financial
statements" (Ordinance of the Ministry of Finance No. 28 of 1976, referred to as the "Ordinance"), the consolidated
financial statements of the Group have been prepared in accordance with International Financial Reporting Standards("IFRS") as permitted by the provisions of Article 93 of the Ordinance.
The consolidated financial statements under review have been approved by Yoshiyuki Sankai, President and CEO of
the Company as well as Shinji Uga, Director and Head of the Corporate Department of the Company on June 25, 2018.
The Group prepared the first consolidated financial statements in accordance with IFRS from the fiscal year ended
March 31, 2018 (from April 1, 2017 to March 31, 2018). The date of transition to IFRS is April 1, 2016 (the "Transition
Date"). The impact of the transition to IFRS on its financial position, operating results and cash flows is stated in "34.
First-time adoption".
The Group prepared the first consolidated financial statements in accordance with IFRS effective as of March 31,
2018. The Group did not include IFRS that was not early adopted and items exempted by IFRS 1 "First-time adoption ofinternational financial reporting standards" ("IFRS 1").
Please refer to Note "34. First-time adoption" for further details on the exempted items.
2. Basis of measurement
As detailed in Note "3. Significant accounting policies", consolidated financial statements of the Group have been
prepared on a historical cost basis, except for specific financial instruments and others measured at fair value.
3. Functional currency and presentation currency
The consolidated financial statements of the Group are presented in Japanese yen, which is the Company's functional
currency, rounded to the nearest million yen.
4. Early adoption of new accounting standards
As of the Transition Date, the Group has early adopted IFRS 9 "Financial Instruments" (announced in July 2014) as well
as IFRS 15 "Revenue from Contracts with Customers" (announced in May 2014) and "Clarification of IFRS
15" (announced in April 2016) (collectively referred to as "IFRS 15").

- 8 -3．Significant accounting policies
1. Basis of consolidation(i) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it has exposure, or rights, tovariable returns from involvement with an investee and has the ability to affect those returns through its power overthe investee.
The financial statements of subsidiaries are included in the consolidated financial statements of the Group fromthe date the Group gains control until the date it loses control of the subsidiary.
Some of the subsidiaries has a close date of December 31. Due to the relationship with other shareholders andagreements of contract, it is impossible to practically unify the closing date for these subsidiaries. As such, thesesubsidiaries are subject to provisional settlements of accounts on March 31, and the Group utilizes these accounts for
its consolidated financial statements.
All intergroup balances, transactions, income and expenses and unrealized gains and losses arising from intergrouptransactions are eliminated in preparing the consolidated financial statements.
Comprehensive income of subsidiaries is attributed to owners of the parent and to the non-controlling interests
even if this results in the non-controlling interests having a deficit balance.
A change in the Group's ownership interest in a subsidiary, without a loss of control, is accounted for as an equity
transaction. Any difference between the amount by which the non-controlling interests are adjusted and the fair valueof the consideration paid or received is recognized directly in equity attributable to the owners of the parent.
In case of a change in the Group's ownership interest in a subsidiary, resulting a loss of control, profit or losses
arising from the loss of control is recognized as net loss.
(ii) Associates
An associate is defined as an entity over which the Group has significant influence on financial and operating policy
decision but does not have control over the entity.
The Group is presumed to have significant influence over another entity when it holds at least 20%, but no morethan 50% of the voting rights of that entity.
Investments in associates are accounted for by equity method from the date the Group gains significant influence
until the date it loses that influence.
Amount equivalent to the Group's share of the affiliates' loss is recognized as a loss until the amount exceeds theinvestment, and losses in excess of the investment are recognized only to the extent that the Group has incurred legal
or constructive options or made payment on behalf of the associate.
Any excess of the cost of acquisition over identifiable assets, liabilities and contingent liabilities of the associates
at the date of acquisition are recognized as goodwill and it shall be included in the carrying value of the investment.
As the relevant goodwill is not recognized separately, it shall not be tested for impairment on individual basis.
However, if there is objective evidence on possibility of impaired investment, the Group shall test its investment toassociates for impairment by recognizing the investment as single asset in net amounts.
(iii) Joint venture
Joint venture is an entity jointly controlled by two or more parties including the Group under the contractually agreed
share of control of an arrangement over economic activity of the joint venture, which exist only when decision forstrategic, financial and operating decisions related to relevant activities require unanimous consent of the parties
sharing control. A joint venture of the Group is accounted for using the equity method.
Some of the joint venture has a close date of December 31. Due to the relationship with other shareholders andagreements of contract, it is impossible to practically unify the closing date for the said joint venture. As such, theGroup makes adjustments to important transaction and event during the period, in order to reflect the impact ofchanges caused by the difference of close dates.

- 9 -2. Business combinations
Business combinations are accounted for using the acquisition method. The consideration of an acquisition is measured
as the aggregate of the acquisition-date fair value of the assets transferred, liabilities assumed and equity securities
issued by the Group to the former owners of the acquiree in exchange for control of acquiree. Any excess of theconsideration over the net fair value of identifiable assets acquired and liabilities assumed at the acquisition date isrecognized as goodwill in the consolidated statement of financial position. Conversely, any deficit is immediately
recognized as income in the consolidated statement of income.
Costs associated with business combinations, such as advisory fees, attorney fees and due diligence costs, areexpensed as incurred.
If the initial accounting for a business combination is incomplete by the end of the fiscal year in which the
combination occurs, provisional amounts of incomplete items are measured, which are adjusted during the measurement
period within one year from the date of acquisition. During the measurement period, the Group shall retrospectively
adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts andcircumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts
recognized as of that date. If this new information bring about new recognition on assets and liabilities, it will berecognized as additional assets and liabilities. Measurement period could last no longer than one year from the date ofacquisition.
The additional acquisition of non-controlling interests is accounted for as an equity transaction, and therefore no
goodwill is recognized with respect to such transaction.
Identifiable assets and liabilities of the acquiree in business combinations are measured at their acquisition-date fairvalue, with the following exceptions:・Deferred tax assets and liabilities and assets or liabilities related to employee benefit arrangements
・Share-based payment transactions of the acquire・Non-current assets and disposal groups that are classified as held for sale in accordance with IFRS 5 “Non-current
assets held for sale and discontinued operations”
In a business combination achieved in stages, the Group re-measures its previously held equity interest at theiracquisition-date fair value and recognizes resulting gain or loss, if any, in new profit or loss.
3. Foreign currency transaction(i) Foreign currency transactions
Foreign currency transactions are translated into the functional currency of each company of the Group at the spot
exchange rate at the date of the transaction, or an exchange rate that approximates the spot rate.
Foreign currency monetary items are translated into the functional currency using the rates at the end of reporting
period.
Non-monetary items that are measured at fair value in foreign currencies are translated into the functional currency
using the exchange rates at the date when the fair value was measured.
Exchange differences arising from such translations and settlements are recognized in profit or loss. However,exchange differences arising from financial assets measured at fair value through other comprehensive income arerecognized in other comprehensive income.
(ii) Financial statements of foreign operations
Assets and liabilities of foreign operations are translated at the rate at the end of each reporting period. Income andexpenses are translated at the average exchange rates for the period, provided that there were no significant
fluctuations in the exchange rates during the period. Exchange differences arising from translation of the financial
statements of foreign operations are recognized in other comprehensive income. On the disposal of a foreign
operation, the cumulative amount of exchange differences relating to that foreign operation is reclassified fromequity to profit or loss when the gain or loss on disposal is recognized.

- 10 -

4. Financial instruments
The Group has early adopted IFRS 9 "Financial Instruments" (revised in July 2014).
(i) Financial assets(1) Initial recognition and measurement
The Group classifies the financial assets it holds as financial assets measured at fair value through profit or loss,
financial assets measured at fair value through other comprehensive income or financial assets measured atamortized cost. This classification is determined at initial recognition.
The Group recognizes and derecognize all financial assets on trade date where the purchase or sale of afinancial asset under a contract whose terms require delivery of the financial asset within the timeframe
established by the market concerned, and are initially measured at fair value, plus transaction costs except for
those financial assets classified at fair value through profit or loss, which are initially measured at fair value.
Financial assets held by the Group are measured at amortized cost if both of the following conditions are met.
・The financial asset is held in a business model whose objective is to hold financial assets in order to collectcontractual cash flows
・The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding.
Equity instruments that are not measured through amortized cost are classified as equity instruments measured
at fair value.
Excluding equity instruments measured at fair value through profit or loss that is held for trading, for eachindividual equity items, the Group designates whether it shall be measured at fair value through profit and loss or,whether it shall be measured at fair value through comprehensive income. This designation is continuously used
after the initial designation.
(2) Subsequent measurement
Measurement of financial assets after initial recognition is performed according to the classification of financial
asset as follows:(a) Financial assets measured at amortized cost
The carrying amounts of financial assets measured at amortized cost are recognized using the effective interest
method.
(b) Financial assets measured at fair value
These financial assets are measured at fair value after initial recognition, and changes in their fair value arerecognized in profit or loss.
However for financial assets designated as financial assets measured at fair value through comprehensive
profit, the Group recognizes changes in their fair value as other comprehensive income.
Dividends from equity instruments measured at fair value through other comprehensive income arerecognized as financial income in profit or loss.
(3) Derecognition of financial assets
The Group derecognizes financial assets only when the contractual rights to the cash flows from the financial
assets expire, or when the Group transfers financial assets. In cases where the Group continue to possessownership over the transferred asset, it shall be recognized as liability related to the asset within the range ofownership held, so long as this ownership continues to remain in effect.
(4) Impairment of financial assets
With respect to impairment of financial assets measured at amortized cost, the Group recognizes allowance for
doubtful accounts for expected credit losses on such financial assets.
At each reporting date, the Group assesses whether the credit risks on the financial assets have increased
significantly since initial recognition.
If credit risk on a financial instrument has not increased significantly since initial recognition, the allowance for
doubtful accounts for that financial instrument is measured at an amount equal to the 12-month expected credit
losses. If credit risk in a financial instrument has increased significantly since initial recognition, the allowance for
doubtful accounts is measured in an amount equal to the lifetime expected credit losses.

- 11 -

The Group determines if credit risk has increased significantly by evaluating changes in default risk withreference to factors including downgrading of internal credit ratings, the decline of counterparty results anddelinquency information.
Furthermore, if the credit risk is determined to be low as of the closing date, the Group shall assess that credit
risk on a financial instrument has not increased significantly since the initial recognition.
However, the allowance for doubtful accounts on trade receivables and others is always measured in an amountequal to the lifetime expected credit losses.
The expected credit losses of financial assets are estimated in a way that reflects the following:
・An unbiased and probability-weighted amount determined by evaluating a range of possible outcomes
・The time value of money
・Reasonable and supportable information about past events, current conditions and forecasts of economic
conditions that is available without undue cost or effort at the reporting date
The amounts of these measurements are recognized in profit or loss.
If an event that reduces an impairment loss occurs after the impairment loss has been recognized, theimpairment loss will be reversed to the extent of the decrease and credit to profit or loss.
(ii) Financial liabilities(1) Initial recognition and measurement
The Group classifies financial liabilities as either financial liabilities measured at fair value through profit or loss,
or financial liabilities measured at amortized cost. This classification is determined at initial recognition.
All financial liabilities are measured at fair value. However, financial liabilities measured at amortized cost aremeasured in the full amount after deducting directly attributable transaction costs from the fair value.
(2) Subsequent measurement
Measurement of financial liabilities after initial recognition is performed as follows, according to the classificationof the financial liabilities.
Financial liabilities measured at amortized cost are subsequently measured at amortized cost using the effective
interest method.
Amortization using the effective interest method and gains and losses on derecognition are recognized in profit
or loss for the period.
(3) Derecognition of financial liabilities
The Group derecognizes financial liabilities when they are extinguished (i.e., when the obligation specified in thecontract discharged or cancelled or expires).
(iii) Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount is presented in the consolidated statement offinancial position only when the Group currently has a legally enforceable right to set off the recognized amount andintends either to settle on a net basis or realize the assets and settle the liabilities simultaneously.
(iv) Fair value of financial instruments
For financial instruments measured at fair value, their fair value are classified into Level 1 through Level 3 based on
the observability of inputs used for the measurement and their materiality.
Level 1: Quoted prices in active markets for identical assets or liabilities (unadjusted)
Level 2: Fair value determined using observable prices other than Level 1 for the asset or liability directly or
indirectly
Level 3: Fair value determined using the valuation technique including unobservable inputs for the asset or liability- 12 -

5. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments that are highly liquid
and readily convertible to known amounts of cash subject to an insignificant risk of changes in value, and that mature or
become due within three months from the date of acquisition.
Cash and cash equivalents include certificates of deposit and joint-managed money trust.
6. Inventories
Inventories are measured at the lower of cost and net realizable value. Cost of finished goods as well as work in process
are calculated using specific identification method and purchase cost. Merchandise and raw materials are calculatedusing moving average method. These include processing cost and all other costs incurred in bringing the inventories totheir existing location. Net realize value is estimated selling price in the ordinary course of business less the estimatedcosts of completion and the estimated costs necessary to make the sale.
7. Property, plant and equipment
Property, plant and equipment are carried at cost less any accumulated depreciation and impairment losses.
The cost of an item of property, plant and equipment comprises any costs directly attributable to acquisition of theasset and the initial estimate of the costs of dismantling and removing the item and restring the site on which it islocated.
Depreciation of assets other than land and construction in progress is calculated on a straight-line basis over theestimated useful lives of the assets. The estimated useful lives of major asset items are as follows:
Buildings and structures:

3 to 38 years

Operating lease assets

5 years

Tools, furniture and fixtures:

2 to 20 years

The estimated useful lives, residual value and depreciation method are reviewed at each fiscal year end, and any
revisions are applied prospectively as changes in accounting estimates.
8. Intangible assets(i) Intangible assets
Intangible assets acquired separately are measured using acquisition cost at the initial recognition.
After initial recognition, with the exception of intangible assets with indefinite useful life, intangible assets areamortized on a straight-basis over their estimated useful lives and are presented at acquisition cost reduced by theaccumulated depreciation and the accumulated impairment loss.
Expenditures related to internal generated intangible assets are recognized as expenses when incurred, with the
exception of development expenses that meet the criteria for capitalization.
The Group has no intangible assets with indefinite useful lives. The estimated useful lives of major intangible
assets are as follows:
Software3 to 5 years

Patents

8 years

The estimated useful lives, residual values and amortization method are reviewed at each fiscal year end, and any
revisions are applied prospectively as changes in accounting estimates.
(ii) Research and development expenses
Research expenditures are expensed as incurred. Development expenditures are capitalized only if they can bemeasured reliably, future economic benefits are probably, and the Group intends to, and has sufficient resources to,complete development and to use or sell assets.

- 13 -

9. Leases
The Group classifies a lease that transfers substantially all the risks and rewards incidental to ownership of an asset as afinance lease and a lease other than a finance lease as an operating lease.
Leases as lessee
Lease payments under operating leases are recognized as an expense on a straight-line basis over the lease term.
Variable lease payments are recognized as expenses for the incurred period.
Leases as lessor
Income from operating leases is recognized on a straight-line basis over the lease term. Furthermore, operating leases by
the Group such as HAL are presented in the Group's consolidated statements of financial positions as operating leaseassets. Please refer to Note "3. Significant accounting policies, 7. Property, plant and equipment" for further details.
With regards to finance lease transaction as manufacturer or distributor, income from financial leases is recognized inaccordance with the accounting policy the Group follows for sales of goods. Please refer to Note "23. Revenue".
10. Impairment of non-financial assets
Non-financial assets excluding inventories are assessed at the end of each reporting period to determine whether there is
any indication of impairment. If there is an indication of impairment, the recoverable amount of the asset is estimated.
A cash-generating unit, which is a unit for conducting impairment testing, is the smallest group of assets thatgenerates cash inflows that are generally independent of cash flows of other assets or groups of assets. The recoverable
amount of an asset or a cash-generating unit is the greater of its value in use or its fair value less cost to sell. Value in
use is the present value of the future cash flow deemed to generate from assets or cash generating unit.
If there is any indication of a reversal of impairment loss recognized in prior year at the end date of each reporting
period, recoverable amount of assets or cash generating unit shall be estimated. In case where recoverable amounts
exceeds the carrying amount of assets or cash generating units, the Group shall reverse the impairment loss at the
maximum of amount calculated by deducting the depreciation and amortization needed from the carrying amount of
unrecognized impairment loss in the prior year.
11. Employee Benefits
Short term employee benefit obligations are measured on an undiscounted basis, and are recognized as an expense when
the related services are rendered. For bonuses, when there is a present legal or constructive obligation to make paymentsof bonuses, and a reliable estimate of the obligation can be made, the estimated amount to be paid is accounted for as aliability.
Paid leave expenses are recognized as expenses when labor that grants an employee with additional rights to paid leave
are incurred.
12. Share-based payment
The Company has a stock option scheme accounted for as an equity-settled share-based payment scheme. Equity-settled
share-based payment scheme is estimated at fair value of the date of allotment, taking estimated number of subscription
rights to share that is likely to be vested into the account. It is recognized as an expense in the consolidated statement of
profit or loss from the date of allotment through the vesting period and the same amount as an increase in asset in the
consolidated statement of profit and loss. Fair value of the allotted option is calculated mainly by Black-Scholes Model,
taking the conditions of the option into the account. Furthermore, the conditions of stock options are reviewed on
regular basis and estimate of subscription rights to share are adjusted where necessary.

- 14 -

13. Provisions
Provisions are recognized when the Group has a present legal or constructive obligation as a result of a past event, it isprobable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a
reliable estimate can be made of the amount of obligation. Where time value of money is material, a provision ismeasured by its present value to which estimated future cash flows are discounted using a pre-tax discount rate thatreflects the risks specific to the provision. Interest cost associated with the passage of time is recognized as financecosts.
14. Revenue
The Group has early adopted IFRS 15 "Revenue from Contracts with Customers" (announced in May 2014) and"Clarification of IFRS 15" (announced in April 2016) (collectively referred to as "IFRS 15")
The Group recognizes revenue based on the following five-step model, excluding revenue from dividend and interest
income based on IFRS 9 "Financial Instruments".
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the entity satisfies a performance obligation
Details on recognition of revenue are stated in Note "23. Revenue".
15. Government grants
Government grants are measured and recognized at fair value, when there is reasonable assurance that the Group willcomply with the conditions attaching to them and that the grants will be received. Group fulfills the incidental condition
for grants and receives reasonable assurance that the grants are scheduled for delivery.
For government grants related to expenses items, related costs that will be compensated by grants are recognized over
the recognized term as revenue on regular basis. Grants related to assets is calculated by deducting the amount ofrelevant grants from the acquisition cost of assets.

- 15 -

16. Income taxes
Income taxes consist of current income taxes and deferred income taxes. Income taxes are recognized as income or
expenses and included in profit or loss, except for taxes related to business combinations and taxes related to items thatare recognized directly in equity or in other comprehensive income.
Current income taxes are recognized in the amount of the expected taxes payable to or receivable from the taxation
authorities. Calculation of the amount of tax is based on the tax rates and tax laws enacted or substantively enacted by
the end of the reporting period in countries.
Deferred tax assets and liabilities are recognized for temporary differences between the carrying amounts of assets or
liabilities at the end of the reporting period and its tax base, and for tax loss carryforwards and tax credits.
Deferred tax assets and liabilities are recognized for the following temporary differences:
・Taxable temporary differences arising from initial recognition of goodwill
・Temporary differences arising from initial recognition of assets and liabilities from transactions that are notbusiness combinations and affect neither accounting income nor taxable income
・Taxable temporary differences associated with investments in subsidiaries and associates where the timing of thereversal of the temporary differences will not reverse in the foreseeable future or where it is no longer probablethat sufficient tax profit subject to taxable temporary difference will be available.
・Taxable temporary differences associated with investments in subsidiaries and associates where the timing of thereversal of the temporary differences can be controlled and it is probable that the temporary differences will notreverse in the foreseeable future.
The carrying amount of deferred tax assets are reviewed at the end of each reporting period and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the assets to be
recovered. Unrecognized deferred tax assets are reassessed at each reporting period and are recognized to the extent thatit has become probable that future taxable profits will allow the deferred tax assets to be recovered.
Deferred tax assets and liabilities are measured at the tax rate that are expected to apply to the period when the assets
are realized or the liabilities are settled, based on the tax rates and tax laws enacted or substantively enacted by the endof the reporting period.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when they relate to income taxes levied by the same tax authority, or on different
taxable entities that intend either to settle current tax assets and liabilities on a net basis, or to realize the assets and settle
the liabilities simultaneously.
17. Earnings per share
Basic earnings per share are calculated by dividing profit (loss) attributable to owners of the parent by the weighted
average number of ordinary shares outstanding during the period, adjusted for treasury shares held. Diluted earnings per
share are calculated by adjusting the effects of all dilutive potential ordinary shares.
18. Equity and other capital(i) Common shares
Common shares issued by the Company are recognized in share capital and capital surplus at their issue price. Shareissuance costs are deducted from the issue price.
(ii) Treasury shares
When a treasury share is acquired, consideration received including direct transaction cost is recognized as deducted
items from equity. When a treasury share is sold or re-issued, consideration received is recognized as increase incapital. Surplus and deficit generated by this transaction are presented as capital surplus.

- 16 -

4．Significant accounting estimates and judgments
The preparation of the consolidated financial statements in conformity with IFRS requires management to makeestimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income,expenses and related disclosures. Due to uncertain nature of estimates, in some cases actual results may vary from initial
estimates.
The estimates and their underlying assumptions are reviewed by management on an ongoing basis. The effects ofrevisions to accounting estimates and assumptions are recognized in the period when the estimates are revised and in
future periods.
Estimates and assumptions that significantly affect the amounts recognized in the Group's consolidated financial
statements are as follows:・Matters concerning financial instruments (Notes "3. Significant accounting policies, 4. Financial instruments", Notes"9. Other financial assets" as well as "31. Financial instruments")
・Impairment of non-financial assets (Note "3. Significant accounting policies, 10. Impairment of non-financial assets")
・Useful lives of property, plant and equipment, estimation of residual value (Note "3. Significant accounting policies, 7.
Property, plant and equipment")
・Collectability of deferred tax assets (Note "15. Income taxes")
・Recognition of revenue (Note "3. Significant accounting policies, 14. Revenue", Note "23. Revenue")・Measurement of share-based payments (Note "30. Share-based payment")- 17 -

5．New standards and interpretations not yet adopted
Certain new accounting standards and interpretations or amendments have been published by the date of authorization
for issuance of the consolidated financial statements that are not mandatory for the reporting period and have not been
early adopted by the Group.
The Group is currently evaluating the possible impacts on the consolidated financial statements resulting from theadoption of these IFRSs and the estimates are currently not available.

IFRSs
IAS 28Investments in

Mandatory
adoption on or
afterJanuary 1, 2018

Associates and Joint
Ventures

Date ofadoption by
the Group
Fiscal year

Revised accounting process upon holding

ending Marchany investment through venture capitals

31,2019

towards affiliates or jointly controlled

Nature of the new standards oramendments

entityIFRS 2

Share-based Payment

January 1, 2018

Fiscal year

Revised classification and measurement ofending March

share-based payment transactions

31,2019
IAS 28Investments inJanuary 1, 2019

Associates and Joint
Ventures
IFRS 16

LeasesJanuary 1, 2019

Fiscal year

Clarification that accounting process ofending Marchequity (of which, equity method won't be

31,2020

applied on) is conducted through IFRS 9

Fiscal year

Revised lease definition, accounting

ending Marchtreatment and disclosure

31,2020IFRS 10

Consolidated Financial

Undecided

Undecided

Statements
IAS 28

Revised accounting process upon sale orcontribution of assets between an Investor
and its Associate or Joint Venture

Investments in
Associates and Joint
Ventures- 18 -

6．Segment information
1. Summary of reportable segments
The Group's reportable segments are the components of the Group for which discrete financial information is available
and which are regularly reviewed by the Board of Directors in deciding how to allocate resources and in assessing theirperformance.
Since the Group operates under a single segment of business related to robotics, segment information is omitted.
2. Revenue and results of reportable segments
Since the Group operates under a single segment, segment information is omitted.
3. Information about Products and Services
Since revenue of a single classification of products and services to outside clients exceed 90% of revenue in thestatement of profit or loss, segment information by product and service is omitted.
Note "23. Revenue" presents the details of revenue.
4. Geographical information
Revenue to customers and non-current assets by region consist of the following:
Revenue to customers
2017

2018

Millions of yen
JapanMillions of yen
1,576

1,564

EMEA

84

164

Total

1,660

1,728

(Note) Revenue is classified by country or region based on the location of customers.
Non-current assets
Since the amount of non-current assets located in Japan exceeds 90% of the amount of non-current assets in the
consolidated financial position, non-current assets information by geographical area is omitted.
5. Information about major customers
Information about major customers has been omitted as the revenue from each customer is less than 10% of the Group's
revenue.

- 19 -

7．Cash and cash equivalents
Cash and cash equivalents consist of the following:Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Cash and cash equivalents
Cash and deposits

12,961

10,378

6,820

Short-term investments

5,500

3,000

4,000

Total

18,462

13,378

10,820The balance of cash and cash equivalents presented in the consolidated statement of financial position is equal to thebalance of cash equivalents presented in the consolidated statement of cash flows.

- 20 -

8．Trade and other receivables
Trade and other receivables consist of the following:Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Accounts receivable-trade

217

247

363

Accounts receivable-other

356

133

24

Allowance for doubtful accounts

(1)

(1)

(2)

573

379

385

Total

Trade and other receivables are classified into the financial assets measured at amortized cost.

- 21 -

9．Other financial assets
1. Other financial assets
Other financial assets consist of the following:Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Other financial assets
Financial assets measured at amortized cost：
Bonds

20,00020,00020,000Time deposits

1,500

－

－

Leasehold and guarantee deposits

60

61

62

Other

0

2

4

Convertible bonds

90

139

298

Other

－

6

7

Financial assets measured at fair value
through profit or loss：

Financial assets measured at fair value
through other comprehensive income：
824

1,863

2,039

22,47522,071

22,41021,501

20,00220,004

975

2,069

2,406

22,47522,071

22,410Equity securities
Total
Current assets
Non-current assets
Total

2. Financial assets measured at fair value through other comprehensive income
Names and fair values of major financial assets measured at fair value through other comprehensive income are as
follows:

SharesTransition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Non-marketable equity securities
Works Applications Co., Ltd.

－

－

783

ExaScaler Inc.

200

600

－

625

1,263

1,256

824

1,863

2,039

Other
Total

Equity securities are held mainly for strengthening relationships with investees. As such, the shares are designated to befinancial assets measured at fair value through other comprehensive income.
There is no dividend income recognized as financial assets measured at fair value through other comprehensive
income for the fiscal years ended March 31, 2017 and 2018.

- 22 -

3. Derecognition of financial assets measured at fair value through other comprehensive income
Items designated as financial assets measured at fair value through other comprehensive income can be disposed andderecognized as part of the Group's capital strategy. During the fiscal year ended March 31, 2018, the Group sold its
shares of ExaScaler Inc. etc.
Fair value and cumulative gains (or losses) recognized in other comprehensive income in other components of equity
at the time of disposal are as follows:
2017
Fair value
Millions of yen

2018
Cumulative gain (or loss)

Fair value

Millions of yen

Millions of yen－－

Cumulative gain (or loss)
Millions of yen
700(Note) Transferred amount to retained earnings.
The cumulative gain or loss recognized in other comprehensive income in other components of equity is
reclassified to retained earnings when the associated financial asset is sold.

- 23 -

100

10．Inventories
Inventories consist of the following:Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Merchandise and finished goods

150

97

Work in process

14

10

12

Raw materials

286

420

467

450

527

565

Total

86

The amount of inventories recognized as expenses and included in the cost of sales for the fiscal years ended March 31,2017 and 2018 were ¥362 million and ¥307 million, respectively.
Write-down of inventories recognized as expenses and included in the cost of sales for the fiscal years ended March
31, 2017 and 2018 were ¥17 million and ¥20 million, respectively.

- 24 -

11．Other assets
Other assets consist of the following:Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Other current assets
Prepaid expenses

35

31

32

Consumption taxes receivable

42

61

0

Other

1

27

－

77

119

32

Total
Other non-current assets
Long-term prepaid expenses
Total- 25 -

96

88

81

96

88

81

12．Property, plant and equipment
1. Change in property, plant and equipment
The following tables present changes in acquisition costs, accumulated depreciation and impairment losses, andcarrying amounts of property, plant and equipment.
(Millions of yen)
Property, plant and equipment

April 1, 2016

745

3,214

1,449

Tools,
furnitureandfixtures785

Additions

51

－

985

Direct reduction

－

(96)

－

Acquisition costs

Operating leaseassetsLand

Buildings
andstructures

Other

Construction
inprogress

Subtotal

Total

266

700

6,414

7,159

267

7

5,304

6,563

6,614

(631)

(15)

－

－

(742)

(742)

－

－

(149)

(12)

－

(161)

(161)

－

－

(1)

(3)

－

－

(4)

(4)

2

(0)

－

(3)

－

－

(3)

(0)

March 31, 2017

798

3,119

1,803

883

261

6,004

12,06812,867

Additions

26

－

13

254

5

779

1,051

1,077

Sales and

－

－

－

(94)

(2)

－

(95)

(95)

－

－

(1)

(4)

(0)

－

(5)

(5)

－

(1)

－

(1)

－

－

(2)

(2)

824

3,118

1,814

1,038

265

6,783

13,018

13,842by government
grantsSales anddisposals
Exchangedifferences ontranslation offoreign
operations
Other

disposals
Exchangedifferences ontranslation offoreign
operations
Other
March 31, 2018

- 26 -

(Millions of yen)
Property, plant and equipment
Operatinglease assets

Land

Buildings
andstructures

April 1, 2016

(283)

－

(577)

Tools,
furnitureandfixtures(542)

Depreciation

(34)

－

(85)

Sales and

－

－

(2)

March 31, 2017

Accumulated
depreciation andimpairment losses

Other

Construction
inprogress

Subtotal

Total

(212)

－

(1,331)(1,614)

(181)

(18)

－

(284)

(317)

－

138

11

－

149

149

－

(0)

1

(0)

－

0

(1)

(318)

－

(662)

(585)

(219)

－

(1,465)(1,783)

Depreciation

(105)

－

(91)

(164)

(14)

－

(269)

(374)

Sales and

－

－

－

55

0

－

55

55

－

－

0

0

0

－

0

0

－

－

0

－

0

－

0

0

(423)

－

(753)

(693)

(233)

－

(1,679)(2,102)

disposals
Otherdisposals
Exchangedifferences ontranslation offoreign
operations
Other
March 31, 2018

（Note）Depreciation of property, plant and equipment is included in cost of sales, research and development expenses
and other selling, general and administrative expenses in the consolidated statement of income.
(Millions of yen)

Property, plant and equipment

April 1, 2016

462

3,214

872

Tools,
furnitureandfixtures
243

54

700

5,084

5,545

March 31, 2017

480

3,119

1,140

298

42

6,004

10,603

11,083

March 31, 2018

401

3,118

1,061

345

32

6,783

11,33911,740Carrying amounts

Operatinglease assets

Land

Buildings
andstructures

Other

Construction
inprogress

Subtotal

Total

2. Commitments
Commitments to acquire property, plant and equipment were ¥6,650 million at April 1, 2016, ¥680 million at March
31, 2017 and ¥337 million at March 31, 2018, respectively.

- 27 -

13．Intangible assets
The following tables present changes in acquisition costs, accumulated amortization and impairment losses, andcarrying amounts of intangible assets.
(Millions of yen)
Intangible assets
Acquisition costs

SoftwarePatents

Other

Total

April 1, 2016

67

20

7

93

Additions

17

－

5

22

Exchange differences on translation of foreign operations

(0)

－

(0)

(0)

Other

－

－

(4)

(4)

March 31, 2017

84

20

7

111

Additions

45

－

4

48

Sales and disposals

(2)

－

－

(2)

Exchange differences on translation of foreign operations

0

－

0

0

127

20

12

158

March 31, 2018

(Millions of yen)
Intangible assets
Accumulated amortization and impairment losses

SoftwarePatents

April 1, 2016(21)

Amortization

Other

Total

(6)

(1)

(27)

(15)

(2)

(1)

(18)

0

－

0

0

March 31, 2017

(36)

(8)

(1)

(45)

Amortization

(22)

(2)

(1)

(25)

Sales and disposals

2

－

－

2

Exchange differences on translation of foreign operations

(0)

－

(0)

(0)

March 31, 2018

(56)

(11)

(2)

(69)

Exchange differences on translation of foreign operations(Note) Amortization of intangible assets is included in cost of sales, research and development expenses and otherselling, general and administrative expenses in the consolidated statement of income.
(Millions of yen)
Intangible assets
Carrying amounts

SoftwarePatents

Other

Total

April 1, 2016

46

14

6

66

March 31, 2017

48

11

6

66

March 31, 2018

71

9

10

90

- 28 -

14．Investments accounted for using equity method
Investments in associates are accounted for using equity method in the Group's consolidated financial statements. There
are no associates or joint venture that are individually material for the Group.
1. Investments in associates
The carrying amount of investments in associates that are not individually material is as follows:
Transition date
As of April 1, 20162017

Millions of yen
Investments accounted for using equity method

2018

Millions of yen－

Millions of yen
190－

Changes in the Group's share of profit and other comprehensive income of associates that are not individuallymaterial are as follows:
2017

2018

Millions of yen

Millions of yen

The Group's share of profit

－

(11)

The Group's share of other comprehensive income－－

The Group's share of comprehensive income

－

(11)

2. Investments in joint venture
The carrying amount of investments in joint venture that are not individually material is as follows:
Transition date
As of April 1, 20162017

Millions of yen
Investments accounted for using equity method

2018

Millions of yen－

Millions of yen
284－

Changes in the Group's share of profit and other comprehensive income of joint venture that are not individuallymaterial are as follows:
2017

2018

Millions of yen

Millions of yen

The Group's share of profit－

The Group's share of other comprehensive income－－

The Group's share of comprehensive income

－

(10)

- 29 -(10)

15．Income taxes
1. Deferred tax assets and liabilities
Derails of major causes of occurrence and changes in deferred tax assets and liabilities consist of the following:
Fiscal year ended March 31, 2017
(Millions of yen)Transitiondate
As of April 1,
2016
－

－

Recognizedin othercomprehensi
ve income－－15

Property, plant and equipment

63

Other

Deferred tax assets

Recognizedin profit or
loss

March 31,
2017

Other
－

－

194

－

210

2

－

－

64

2

(0)

－

(1)

1

64

17

194

(1)

275

Deferred tax liabilities
Financial assets measured at fair value throughother comprehensive income

Total
Fiscal year ended March 31, 2018

(Millions of yen)
April 1, 2017

Recognizedin profit or
loss

－

－

Recognizedin othercomprehensi
ve income
－

210

0

Property, plant and equipment

64

Other

1
275

Deferred tax assets

Other

March
31,2018

－

－

(2)

(127)

81

(0)

－

－

64

(0)

－

－

1

(0)

(2)

(127)

145

Deferred tax liabilities
Financial assets measured at fair value throughother comprehensive income

Total(Note) Due to sale of part of financial assets measured at fair value through other comprehensive income, temporary
differences was resolved and transferred to retained earnings.
Deductible temporary differences and unused tax losses for which no deferred tax asset is recognized are as follows:

Unused tax losses

Transition date
As of April 1, 20162017

Millions of yen

Millions of yen

5,294

Millions of yen

5,875

5,580

779

975

1,234

6,073

6,850

6,814

Deductible temporary differences
Total

2018

(Note)The amount of unused tax losses and deductible temporary differences is described as income basis amount.
Unused tax losses for which no deferred tax asset is recognized will expire as follows:
Transition date
As of April 1, 20162017

Millions of yen

2018

Millions of yen

Millions of yen

Expires within 1 year

－

817

764

Expires between 1 and 2 years

817

764

600

Expires between 2 and 3 years

764

600

516

Expires between 3 and 4 years

600

516

455

3,113

3,179

3,246

5,294

5,875

5,580

Expire after 4 years
Total- 30 -

The aggregate amounts of taxable temporary differences associated with investments in subsidiaries and associates forwhich deferred tax liabilities were not recognized at March 31, 2018, 2017 and April 1, 2016 were not material,
respectively.
The Group did not recognize deferred tax liabilities for these temporary differences because it was able to control thetiming of the reversal of these temporary differences, and it was probable that the temporary difference will not reversein the foreseeable future.
2. Income tax expense
Income tax expense consists of the following:
2017

2018

Millions of yen

Millions of yen

Current taxes

1

6

Deferred taxes

47

(0)

49

6

Total
3. Reconciliation of effective tax rate

The details of difference between the effective statutory tax rate and the Group's average tax rate consist of thefollowing:
2017

2018

%

%

Effective statutory tax rate

30.69

30.69

Non-deductible expenses(4.86)(0.15)Tax rate change (Note)

6.38

－

Differences in overseas tax rates

0.52

0.63

Unrecognized differed tax asset(37.88)(35.66)

－

3.14

Other

(2.39)

0.46

Average actual tax rate

(7.55)(0.89)

Share of profit (loss) of investments accounted for using
equity method

Income tax, inhabitant tax and business tax are the main components of income tax expense imposed on the Group,and the effective statutory tax rate based on those taxes was 30.69% for the year ended March 31, 2017 and 30.69% for
the year ended March 31, 2018.
(Note) The "Act for partial revision of the income tax act, etc." (Act No. 15 of 2016) and the "Act for partial revision of
the local tax act, etc." (Act No. 13 of 2016) enacted in Japan on March 29, 2016 reduced the income tax rate for
the Company and subsidiaries within Japan for fiscal years beginning on or after April 1, 2016 (Transition date).

- 31 -

16．Bonds
1. Bonds
Convertible bonds with stock acquisition rights scheduled for redemption within one year consists of the following:Transition date
As of April 1, 2016

2017

2018

Averageinterest rate

Millions of yen

Millions of yen

Millions of yen%

Maturity

Convertible bonds with stock
19,926

－

－

－

－

Total

19,926－－－－

Current liabilities

19,926

－

－

－

－

－

－

－

－

－

19,926－－－－acquisition rights scheduled forredemption within one year

Non-current liabilities
Total(Note) After initial recognition, liabilities of composite financial instrument are measured by amortization cost based on
effective interest rate method. Capital of composite financial instrument is not re-measured after initialrecognition.
Details of convertible bonds with stock acquisition rights scheduled for redemption within one year issued are as
follows:
IssuerBond name

Issue date

Transition date
As of April 1, 2016

2017

2018

Interest
rate

Millions of yen

Millions of yen

Millions of yen%

Collateral

MaturitydateLong-term
bonds—Euroyen zero coupon
CYBERDYNE,
INC.

convertiblebond-type bonds
withNovembe19,926

r 26, 2014

(19,926)

－

－

－

None

－

－

－

－

December
12, 2017

subscription
rights to shares,
due 2017
19,926

Total(19,926)－(Notes)
1. Amount in brackets is amount scheduled for redemption within one year.
This was due to the Company's decision to exercise its option to redeem early on April 22, 2016, following thefulfillment of 120% call option articles.
2. Details of convertible bonds with stock acquisition rights
Issuance price ofstock acquisitionrightsIssuerIssue price ofsharesYen

Total issue priceTotal issue price by
exercise of stockacquisition rights

Allotment
ratio of stockacquisitionrightsMillions of yen

Millions of yen％

Exercise period:

Matters
related to
substitute
payment

From
CYBERDYNE,
INC.

Gratis

1,699

20,000－100

December 26, 2014
to（Note）

November 28, 2017

(Note) Description of the asset to be contributed upon the exercise of stock acquisition rights and the amount there of:Upon the exercise of each stock acquisition rights, the relevant bond with stock acquisition rights shall becontributed.
(3) All stock acquisition rights was exercised by June 1, 2016 and converted to Common Share. For further details on
non-cash transaction arising from conversion, please refer to Note "29 Non-cash transactions"- 32 -

2. Assets pledged as collateral
Assets pledged as collateral were as follows:
Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Buildings
Total

280

280

－

280

280

－

(Note) There are no secured liabilities, though the buildings disclosed above are pledged as collateral.

- 33 -

17．Leases
1. Operating leases (as lessee)
As a lessee the Group possesses operating lease contract of assets including land and buildings. The Group has nocovenants such as restrictions on renewable option, purchase option, escalation clauses and lease contracts.
Amount of lease payment that is included in "cost of sales", "research and development expenses" as well as "otherselling, general and administrative expenses" of consolidated statement of profit and loss at March 31, 2017 and March
31, 2018 were ¥72 million and ¥66 million, respectively. Furthermore, this amount of lease payment includes variable
lease payment that links with revenue etc. and at March 31, 2017 and March 31, 2018, amount of variable lease
payments included was ¥6 million and ¥6 million, respectively.
2. Operating leases (as lessor)
As a lessor, the Group leases products such as HAL. The Group has no covenants such as restrictions on renewable
option, purchase option, escalation clauses and lease contracts.
The total of future minimum lease payment under non-cancellable operating lease contracts consists of the following:Transition date
As of April 1, 20162017

Millions of yen

Millions of yen

Not later than 1 year
More than 1 year, 5 years or less
total

2018
Millions of yen

268

401

794

170

174

160

438

575

954

3. Finance lease (as lessor)
In cases where the Group acts as a lessor of right-of-use for devices such as HAL, if the lease transfers substantially all
the risks and reward of ownership to the lessee, the Group classifies such lease as financial lease.
As the Group manufactures devices such as HAL, the Group recognizes the revenue from the asset as asset
transferred at a point of time in the same way the Group recognizes regular purchase transactions. Due to theaforementioned reason, there is no gross investment in a lease as well as minimum lease payment based on financelease contract does not occur and related statement is omitted.

- 34 -

18．Trade and other payables
Trade and other payables consist of the following:Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Accounts payable-trade

48

21

53

Accounts payable-other

182

140

204

Other

58

50

17

288

210

274

Current liabilities

252

197

274

Non-current liabilities

36

14

－

288

210

274

Total

Total

Trade and other payables are classified into the financial liabilities measured at amortized cost.

- 35 -

19．Provisions
Changes in provisions consist of following:
Asset retirement
obligations
Millions of yen
As of April 1, 2016

91

Interest expense on discount provision－

Decrease (other)(0)

As of March 31, 201791

Interest expense on discount provision－

Decrease (other)(0)

As of March 31, 201891

Asset retirement obligations are provided based on or pursuant to reasonably estimated future expenditures using
historical experience and other factors when the Group has a legal or contractual obligation associated with theretirement of buildings and land etc.
Provisions consist of the following:Transition date
As of April 1, 20162017

Millions of yen
Current liabilities
Non-current liabilities
Total- 36 -

2018

Millions of yen

Millions of yen

－

－

－

91

91

91

91

91

91

20．Other liabilities
Other liabilities consist of the following:Transition date
As of April 1, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Other current liabilities
Advances received

39

114

85

Accrued bonuses

12

0

21

Obligation for unused paid leave

11

16

21

Accrued expenses

18

16

23

Accrued consumption taxes

2

3

42

Deposits received

9

9

15

113

212

180

204

370

386

29

29

29

29

29

29

Other
Total
Other non-current liabilities
Long-term accounts payable-otherTotal- 37 -

21．Share capital and other equity items
1. Total numbers of authorized shares and issued shares
Total numbers of authorized shares and issued shares are as follows.
2017

2018

(Shares)(Shares)Number of authorized shares :(Note 1)
Common Shares

618,300,000

618,300,000

Class B Shares

77,700,000

77,700,000

Total

696,000,000

696,000,000

Beginning balance

125,576,000

137,347,609

Change during the year (Note 2)

11,771,609－

Ending balance

137,347,609

137,347,609

77,700,000

77,700,000－－

77,700,000

77,700,000

Numbers of issued shares:
Common Shares:

Class B Shares:
Beginning balance
Change during the year
Ending balance(Note 1) Information concerning authorized shares is as follows:(i) Information concerning the scheme of Common Shares and Class B shares is set out below as defined by theCompany's Articles of Incorporation.
(1) Dividends of surplus and distribution of residual assets
Common Shareholders and Class B Shareholders will receive the same amount of distribution of surplus per sharein the same rank.
(2) Voting rights
Common Shareholders and Class B Shareholders are both eligible to exercise their voting rights for all items
resolved at the Meeting of Shareholders.
(3) Restriction on the transfer of Class B Shares
Approval of the Board of Directors is required upon transfer of Class B Share. However, if Class B Shares aretransferred to Class B Shareholders, it will be deemed that the Board of Directors approved the transfer according
to Article 136 or Article 137, Paragraph 1 of the Companies Act.
(4) Cases where resolution of the Meeting of Class Shareholders are not required
Upon conducting acts stated in the items of Article 322, Paragraph 1 of the Companies Act, unless statedotherwise by related law or the Company's Articles of Incorporation, resolution of General Meeting of Class
Shareholders for Common Shares shall not be required.
(5) Conversion of Common Shares at the option of the shareholders.
Holders of Class B Shares may request that the Company acquire Class B Shares held by such shareholders, inwhole or in part, at any time. In exchange for the acquisition of one Class B Share, one Common Share shall bedelivered to such shareholders.
(6) Compulsory conversion
a. Upon occurrence of any event described below, all outstanding Class B Shares shall be acquired, either at thedate stated below or any date before if designated by the Board of Director. In these cases, in exchange for theacquisition of one Class B Share, one Common Share shall be delivered to such shareholders.
(a-1) A resolution at the General meeting of Shareholders (or the Board of Directors of the Company if aresolution at the General Meeting of Shareholders is not required) for (a) a merger of the Company into
any other corporation, (b) share exchange by which the Company becomes a wholly-owned subsidiary of
another corporation or (c) share transfer that is effected jointly with any other corporation is passed, andthe day before the effective date of such merger, share exchange or share transfer has occurred.

- 38 -

(a-2) As a consequence of a tender offer, the offeror holds three-quarters or more of the total number of theCompany's outstanding shares and 90 days have passed after the tender offer report regarding such tender
offer was filed.
"Hold", "offeror" and "tender offer report" means hold, offeror and tender offer report defined in
Chapter II-2, Section 1 of the Financial Instruments and Exchange Act. In addition, "tender offer" means
tender offer defined in Article 27-3 Paragraph 1 of the Financial Instruments and Exchange Act.
(a-3) Consent (a "Shareholders' Consent") is obtained for the acquisition by the Company of all of theCompany's outstanding Class B Shares in exchange for the same number of Common Shares in aconfirmation process (the "Shareholders' Confirmation Process") and 90 days have passed since then.
Under the Company's Article of Incorporation, the Shareholders' Confirmation Process must be
implemented (a) before the conclusion of the General Ordinary Meetings of the Shareholders for the last
fiscal year which ends within one year from the time of retirement of Yoshiyuki Sankai, the President andCEO of the Company, from a member of the Board of Directors and (b) before the conclusion of theGeneral Ordinary Meeting of the Shareholders for the last fiscal year which ends within five years fromthe time of the last Shareholders' Confirmation Process. Under the Company's Article of Incorporation, thequorum for a Shareholders' Consent is one-third of the total number of voting rights of the shareholders
who are entitled to exercise their voting rights (100 shares constitutes one unit of both Common Shares
and Class B Shares for the calculation. Same calculation shall be applied for the entire item a-3) and theconsent of at least two-thirds of the voting rights represented in the Shareholders' Confirmation Process isrequired for a Shareholders' Consent.
b. Pursuant to the Company's Articles of Incorporation, Class B Shares set forth below shall be acquired from theholders of such Class B Shares in exchange for one Common Share per Class B Share if:(b-1) the Company is requested to approve the acquisition of Class B Shares by any person other than theholders of Class B Shares, Class B Shares with respect to which approval for the acquisition was requested
based on Article 136 or Article 137 of the Companies Act; and(b-2) a holder of the Class B Shares died and 90 days have passed without succession or transfer to any otherholder of the Class B Shares, all Class B Shares held by such departed shareholder.
(7) Share split and share consolidation etc.
a. When the Company splits or consolidate its Common Shares or Class B Share, the Company shall split orconsolidate its other share type at the same ratio, simultaneously.
b. When the Company allocates subscribed shares to Common Shareholders or Class B Shareholders, theCompany shall allocate shares to the shareholders of other share type at the same ratio, simultaneously.
c. When the Company allocates stock acquisition rights to Common Shareholders or Class B Shareholders, theCompany shall allocate stock acquisition rights to shareholders of other share type at the same ratio,
simultaneously.
d. When the Company distributes shares for free to Common Shareholders or Class B Shareholders, the Company
shall distribute shares for free to shareholders of other share type at the same ratio, simultaneously.
e. When the Company distributes stock acquisition rights for free to Common Shareholders or Class B
Shareholders, the Company shall distribute stock acquisition rights for free to shareholders of other share typeat the same ratio, simultaneously.
f. When the Company transfers its shares (excluding cases where the share transfer is conducted together withother companies), the Company shall substitute the shares held by shareholders with the shares of the newcompany set up after the transfer, granting shareholders same numbers of shares and same class of shares at thesame ratio.
g. When the Company plans to change its calculation of share units stated in the Articles of Incorporation, it shallbe executed at the same timing and same ratio.

- 39 -

(ii) Class B Shares differ from Common Shares in traded units. Common Shares are traded in units of 100 shares, andClass B Shares are traded in units of 10 shares. This scheme that grants 10 times as many voting rights to Class B
Share was adopted to has been adopted to concentrate the voting rights to Yoshiyuki Sankai and the foundations ofwhich Yoshiyuki Sankai serves as Representative Director (hereinafter referred to collectively as "the Foundation"),so that the Group's innovative technologies can be used solely for peaceful purpose and avoid being used for nonpeaceful purposes such as lethal weaponry in the military industry (the scheme involving the Company's Class B
Shares is hereafter referred to as "Scheme").
Furthermore, the Group has a vision for the future to create a human-assistive industry- a new industrial field thatwill support people by solving issues directly faced by aging and declining birthrate. To realize this vision, the Group
must coordinate business management with R&D of Cybernic Technology. Yoshiyuki Sankai created the Group's
Cybernic Technologies, and continues to be a central figure in Cybernic research. He is also a business leader who
seeks to make this innovative technology widely available for the benefit of the society. For the Group to increase
corporate value (i.e., common interest of shareholders), Yoshiyuki Sankai must be a stable leadership figure in the
management of the Company in the future. This scheme has been adopted to ensure he remains so.
(iii) In order to preserve continuity of this Scheme, Yoshiyuki Sankai plans on transferring part of the Class B Shares heholds as of this submission date to the Foundation at no cost. Furthermore, there are no plans for the Foundations torelease the Class B Shares in their possession.
As a shareholder of Class B Shares, the Foundations established guidelines on the exercise of their voting rights,
to prevent the Group's technologies from being used to harm people or to create military weapons, damaging theGroup's corporate value.
The Foundations will exercise its voting rights related to the Class B Shares they hold against resolutions in the
General Meetings of Shareholders and General Meeting of Class Shareholders in the cases stated below.
Furthermore, a resolution of the board meeting of the Foundations will be required to alter these guidelines, and thechange will be announced by a method determined by the Foundations:(1) if in resolutions for the dismissal or appointment of Directors will lead to the misuse of the Group's innovativetechnology or damage the Group's corporate value(2) for all other resolutions, if the passing of the resolution leads to the prevention of peaceful utilization of theGroup's innovative technologies or damage to the Group's corporate value(Note 2) The following is the main reason of increase of issued Common Shares in the consolidated fiscal year ended
March 31, 2017.
Increase arising from conversion of convertible bonds with stock acquisition rights

11,771,609 shares

2. Treasury shares
The changes in treasury shares are as follows
Number of shares

AmountSharesMillions of yen

As of April 1, 2016
Change during the year
As of March 31, 2017
Change during the year
As of March 31, 2018

138

0

－

－

138

0

－

－

138

0

3. Capital surplus
The Companies Act stipulates that over half of the capital contributed from the issue of shares must be included inshare capital and that the remainder must be included in the legal capital surplus. Moreover, legal capital surplus may
be included in share capital by resolution of the General Meeting of Shareholders.
4. Retained earnings
The Companies Act stipulates that an amount equal to one-tenth of dividends must be appropriated as legal capitalsurplus or as legal retained earnings until the total of the aggregate amount of legal capital surplus and legal retained
earnings equals a quarter of share capital. Legal retained earnings may be appropriated to reduce a deficit, and also
may be reversed by resolution of the General Meeting of Shareholders.
- 40 -

22．Dividends
Dividends paid are as follows:
Fiscal year ended March 31, 2017
There are no items to report.
Fiscal year ended March 31, 2018
There are no items to report.

Dividends with an effective date after the fiscal year ended are as follows:
Fiscal year ended March 31, 2017
There are no items to report.

Fiscal year ended March 31, 2018
There are no items to report.

- 41 -

23．Revenue
1. Disaggregation of revenue
Details of disaggregation of revenue are set forth below.
2017

2018

Millions of yen

Millions of yen

Timing of revenue recognition
Service transferred over time

798

1,061

Asset transferred at a point of time

594

354

268

312

1,660

1,728

Service transferred at a point of time
Total

(Note) Since the Group operates under a single segment of business related to robotics, segment information on revenue
is omitted.
Service transferred over time
Service transferred over time includes rental income based on the individual rental contract and maintenance income
based on the maintenance contract in relation to finance lease income where the Group acts as a lessor of right-of-use
asset.
The Group recognizes rental income as income generated throughout the rental period after the customer acceptanceof the relevant product, by either of the following method. Pay-per-use model based on times of product usage in therelevant month and base fee model based on fixed monthly price.
The Group recognizes maintenance income as performance obligation satisfied over time. The Company records thisrevenue during this contract period based on average amount during the period.
Asset transferred at a point of time
Asset transferred at a point of time includes revenue from sales of commodities and products based on sales contract.
The Group mainly determines that performance obligation of sales of commodities as well as products are satisfied at
the point of customer acceptance the relevant product. The Group receives most of the payment within one month fromthe point of satisfying the performance obligation. With regards to transaction price, there is no significance in theamount of sales revenue that includes variable consideration. Furthermore, there are no significant financial components
in the amount of promised consideration.
Furthermore, if the Group acts as a lessor of right-of-use of its devices such as HAL, the Group classifies the relevant
lease as finance lease. Finance lease income is processed in the same way as cases where the Group acts as a lessor of
manufacturer or distributor of sales of goods. The Group determines that performance obligation is satisfied at the pointof customer acceptance and the revenue is recognized at a point of time.
Service transferred at a point of time
Service transferred at a point of time includes revenue from offering Cybernic Treatment and training service at Robo
Care Centers, to end users (such as patients).
The Group determines that performance obligation of Cybernic Treatment as well as training services are satisfied at
the point of completion of such services.

- 42 -

2. Changes in the contract
Receivables and contract liabilities from contracts with customers are as follows:
As of March 31, 2016

2017

2018

Millions of yen

Millions of yen

Millions of yen

Receivables
Accounts receivable

217

247

363

5

16

8

Contract liabilities
Advances received(Note) The balance of advances received at the beginning of April 1, 2016 and 2017 was fully recognized as revenue
and the amount was ¥1 million and ¥12 million respectively. Furthermore, the amount of revenue recognized
during the fiscal year ended March 31, 2017 and 2018, from performance obligations satisfied in previous
periods were not material.
3. Timing of performance obligations satisfaction
Recognition of revenue arising from maintenance contract that occur incidental to sales of commodities are as follows:
2017

2018

Millions of yen

Millions of yen

Not later than 1 year

248

286

More than 1 year, 5 years or less

724

667

Total

972

954

- 43 -

24．Selling, general and administrative expenses
Other selling, general and administrative expenses consist of the following:
2017

2018

Millions of yen

Millions of yen

Personnel expenses

409

410

Taxes and dues

229

256

Commission expenses

159

213

Depreciation

123

139

Other
Total

441

371

1,361

1,390

Personnel expenses included in cost of sales, research and development and other selling, general and administrative
expenses in the consolidated statement of profit or loss were ¥853 million as of March 31, 2017 and ¥836 million as ofMarch 31, 2018.

- 44 -

25．Other income and other expenses
Other income consists of the following:
2017

2018

Millions of yen

Millions of yen

Grants138

14Consigned research income

284

292

Foreign exchange gain

－

11

Other

77

47

499

364

Total
Other expenses consist of the following:
2017

2018

Millions of yen

Millions of yen

Foreign exchange loss

3

－

Other

4

4

7

4

Total

- 45 -

26．Financial income and financial costs
Financial income consists of the following:
2017

2018

Millions of yen

Millions of yen

Interest income:10

13

Financial assets measured at fair value through profit or loss

Financial assets measured at amortized cost

49

－

Total

59

13

Financial costs consist of the following:
2017

2018

Millions of yen

Millions of yen

Interest expenses:
Financial liabilities measured at amortized cost
Foreign exchange loss
Other
Total

- 46 -

7

1

0

4

2

1

9

6

27．Other comprehensive income
Amount incurred during the fiscal year, reclassifications to profit or loss and tax effects including non-controllinginterests for each item of other comprehensive income are as follows:
2017

2018

Millions of yen

Millions of yen

Items that will not be reclassified to profit or loss
Financial assets measured at fair value through othercomprehensive income
Gains (losses) arising for the year

611

(523)

Tax effects

(194)

129

After tax effects

417

(394)

Gains (losses) arising for the year

2

(12)

Reclassifications－－

Before tax

2

(12)

Tax effects－－

Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations

After tax effects
Total- 47 -

2

(12)

420

(406)

28．Earnings per share
1. The basis for calculating basic earnings per share
2017
Loss attributable to owners of parent

2018
(676)

(673)

－

－

(676)

(673)

213,822,256

215,047,471(3.16)(3.13)(Millions of yen)Amount not available for common shareholders and shareholders
equivalent to common shareholders(Millions of yen)
Loss used to calculate basic earnings per share(Millions of yen)
Average number of common shares and shares equivalent tocommon shares during the period (Shares)
Basic earnings (loss) per share (Yen)
2. The basis for calculating diluted earnings per share
2017
Loss used to calculated basic earnings per share

(676)

(673)

－

－

(676)

(673)

213,822,256

215,047,471－－

213,822,256

215,047,471(3.16)(3.13)(Millions of yen)
Adjustments to loss (Millions of yen)
Loss used to calculated diluted earnings per share(Millions of yen)
Average number of common shares and shares equivalent tocommon shares during the period (Shares)
Adjustment *Note
Average number of diluted common shares and shares equivalent tocommon shares during the period (Shares)

2018

Diluted earnings (loss) per share (Yen)(Note) Summary of potential shares not included in the calculation of diluted earnings per share as it does not havedilutive effects
2017

2018

SharesShares2015 1st Series Stock Option of CYBERDYNE, INC.

(Common share)

7,800(Common share)

7,800

2016 1st Series Stock Option of CYBERDYNE, INC.

(Common share)

4,600(Common share)

4,600

2016 2nd Series Stock Options of CYBERDYNE, INC.

(Common share) 47,700－－(Common share) 10,500

2017 1st Series Stock Option of CYBERDYNE, INC.

- 48 -

29．Non-cash transactions
The major non-cash transactions (investments and financial transactions that do not use cash and cash equivalents) are
as follows:

Convertible bonds with stock acquisition rights converted

2017

2018

Millions of yen

Millions of yen
20,397

into common shares(Note) There are no changes with significant cash flows.

- 49 -－

30．Share-based payments
1. Outline of share-based payments
The Company adopted an equity-settled share-based payments (stock option). The purpose of this stock option is toraise motivation and morale of the Members of the Board of Directors, Members of the Audit and Supervisory Boardand employees of the Company, as well as employees of subsidiaries and external consultants, toward the growth of theCompany's business results and its corporate value. The content of the stock option is based on the resolution at the
Meeting of Shareholders and approval by the Board of Directors Meeting of the Company. Exercise period of the stockacquisition rights that is included in the stock option is determined by the allotment contract and if the stock acquisitionrights is not exercised by the holder of the stock acquisition rights ("the Stock Acquisition Rights Holder") during thisperiod, stock acquisition rights will lose its effect.
Outlines of the Company stock options issued are as follows:
Class and number ofshares covered by the

Alotteestock option
2015 1st Series Stock
Option of CYBERDYNE,
INC. (Note 1)
2016 1st Series Stock
Option of CYBERDYNE,
INC.

Date of

Exercise

Conditions for determination

allotment

periodof rights

Common Share(100 Common Shares

1 external

August 12,

July 28,

Conditions on determination of

constitute 1 share unit)

consultant

2015

2025

rights are not attached (Note 5)

May 24,

Conditions on determination of2026

rights are not attached (Note 5)

7,800 shares
Common Share(100 Common Shares

1 external

constitute 1 share unit)

consultant

June 8, 2016

4,600 shares
Stock acquisition rights can be
exercised only if theconditions set forth in (a) and(b) below are fulfilled in the

7 Members

fiscal year ended March 31,of the2017 or the fiscal year ended

Board of

March 31, 2018, from the first

Directors, 32016 2nd Series Stock
Options of
CYBERDYNE,
INC.
(Notes 2,3,4)

day of the month following theMembers ofCommon Sharethe Audit(100 Common Shares

andconstitute 1 share unit)

Supervisory

47,700 shares

Board, 102

filing date of the securities
August 25,

August 24,

2016

2021

report of the period in whichthese conditions are first met.
(a) Net sales exceed ¥3,000
millionemployees,(b) Ordinary profit*

17

becomes profitable

employeesof*Income/loss before income tax

subsidiary

without extraordinary
income/loss, also called"pretax income" or "ordinary
profit"2017 1st Series Stock
Option of CYBERDYNE,
INC.

Common Share(100 Common Shares

1 external

August 8,

July 25,

Conditions on determination of

constitute 1 share unit)

consultant

2017

2027

rights are not attached (Note 5)

10,500 shares- 50 -

(Notes)
1. This stock acquisition right was determined before the date of transition to IFRS (April 1, 2016). As such, IFRS 2"Share-based Payment" has not been applied.
2. Other conditions on exercise of stock acquisition rights(i) In the determination of net sales and ordinary profit mentioned in the chart, the net sale and ordinary profit of theconsolidated financial statement of profit or loss (if the consolidated financial statement has not been made, thenon-consolidated financial statement of profit or loss) entered in the Company's securities report shall bereferenced, and if any significant changes to the referenced items occur as a result of the application ofinternational financial reporting standards, indices that ought to be referenced separately shall be determined by
the Board of Directors.
(ii) In the event that a Stock Acquisition Rights Holder dies, and one of the heirs of the Stock Acquisition Rights
Holder ("hereinafter referred to as the "Heir") inherits all of the stock options held by the departed, the Heir isable to exercise the stock acquisition rights. If the Heir dies, the heir of the Heir cannot inherit the stockacquisition rights.
(iii) If the total number of issued shares exceeds the number of authorized shares due to the exercise of stockacquisition rights, the stock acquisition rights cannot be exercised.
(iv) Stock acquisition rights less than one cannot be exercised.
(v) Other conditions for the exercise of the stock options will be determined by the Stock Option Allotment Contract
signed between the Company and the allottee based on the resolution of the Board of Directors of the Company.
3. This stock acquisition right was issued to the Members of the Board of Directors, the Members of the Audit andSupervisory Board and employees of the Company as well as employees of subsidiaries at a price. Amount ofconsideration for stock acquisition rights that should be received from the allottee was determined based on fair value
at the date of allotment.
4. This stock acquisition right has lost its effect as of March 31, 2018, as the conditions for determination of rights were
not achieved.
5. This stock acquisition right has no conditions for determination of rights attached. As such, related expenses areprocessed at once when the rights are allotted.

- 51 -

2. Number of stock options and weighted average exercise price
2017

2018

Weighted average
exercise price
Yen

Number of shares
SharesNumber of shares
Shares

Weighted average
exercise price
Yen

Beginning balance of outstanding

7,800

1,806

60,1002,338

Granted

1,788

52,3002,417

10,500Exercised

－

－

－

－

Expired－－(47,700)

2,355

Expired at maturity

－

－

－

－

Ending balance of outstanding

60,1002,338

22,9002,050

Ending balance of exercisable

－

－

7,800

1,806

(Notes)
1. As of March 31, 2017 and 2018, exercise price of stock options that is not yet exercised are between ¥1,806 to¥3,060 and ¥1,788 to ¥3,060, respectively.
2. As of March 31, 2017 and 2018, weighted average remaining contractual life of stock options that is not yet exercised
are 5 years and 7 years, respectively.
3. The assumption used to measure the fair value of stock options weighted average fair value of the stock options allottedin the fiscal year, are measured through Black-Scholes Model using the following assumptions
Fiscal year ended March 31, 20172016 1st Series Stock Option of
CYBERDYNE, INC.
The weighted-average fair value at the measurement date (Yen)131,630

Stock price at the grant date (Yen)

2,550

Exercise price (Yen)

3,060

Volatility of stock price (%) (Note 1)

59.70

Estimated residual period (Years) (Note 2)

10.00

Estimated dividend (%) (Note 3)－

Risk-free interest rate (%) (Note 4)(0.20)(Notes)
1. Volatility of stock price calculated based on the following conditions:(i) Period for collecting stock price information: 3 years(ii) Frequency of price monitoring: Daily(iii) Irregular information: None(iv) Discontinuous changes in corporate status: None
2. Allotment date: June 8, 2016
Exercise period: From May 25, 2018 to May 24, 2026
3. Calculated based on most recent dividend payment
4. Interest rate converted security asset yield into continuous compound interest method- 52 -

2016 2nd Series Stock Options of
CYBERDYNE, INC.
The weighted-average fair value at the measurement date (Yen)

66,000Stock price at the grant date (Yen)

1,644

Exercise price (Yen)2,355

Volatility of stock price (%) (Note 1)

59.47

Estimated residual period (Years) (Note 2)

5.00

Estimated dividend (%) (Note 3)－

Risk-free interest rate (%) (Note 4)(0.16)(Notes)
1. Volatility of stock price calculated based on the following conditions:(i) Period for collecting stock price information: 5 years(ii) Frequency of price monitoring: Weekly(iii) Irregular information: None(iv) Discontinuous changes in corporate status: None
2. Allotment date: August 25, 2016
Exercise period: From April 1, 2018 to August 24, 2021
3. Calculated based on most recent dividend payment
4. Yield of Japanese Government Bonds for the tenor corresponding to the estimated remaining period
Fiscal year ended March 31, 20182017 1st Series Stock Option of
CYBERDYNE, INC.
The weighted-average fair value at the measurement date (Yen)64,104

Stock price at the grant date (Yen)

1,490

Exercise price (Yen)

1,788

Volatility of stock price (%) (Note 1)

52.50

Estimated residual period (Years) (Note 2)

5.96

Estimated dividend (%) (Note 3)－

Risk-free interest rate (%) (Note 4)(0.04)(Notes)
1. Volatility of stock price calculated based on the following conditions:(i) Period for collecting stock price information: 3.38 years(ii) Frequency of price monitoring: Daily(iii) Irregular information: None(iv) Discontinuous changes in corporate status: None
2. Allotment date: August 8, 2017
Exercise period: From July 26, 2019 to July 25, 2027
3. Calculated based on most recent dividend payment
4. Interest rate converted security asset yield into continuous compound interest method
4. Share-based payment expenses
Share-based payment expenses recognized in "other selling, general and administrative expenses" of the consolidated
statement of profit or loss for the fiscal year ended March 31, 2017 and 2018 were ¥6million and ¥7 million,
respectively.

- 53 -

31．Financial instruments
1. Capital management
The Group is a company centered on research and development of innovative devices. It promotes clinical research,
verification and endeavors to obtain approvals from various regulators, in order to introduce the Group's product into
the market and services, which will realize sustainable growth. In line with these challenges, the Group manages its
financial instruments to maximize its corporate value.
There are no capital restrictions that affect the Group.
2. Risk management for financial instruments
In the process of its operation, the Group is exposed to various financial risks such as, credit risk, liquidity risk andexchange rate risk. In order to mitigate these financial risks, the Group selects financial instruments with very low risk.
For financing, the Group either borrows from the bank or issue bonds. Furthermore, all equity instruments held by theGroup are non-marketable securities and it is not affected by the risk of stock market.
On derivative transaction, the Group has a policy not to conduct any speculative transactions.
(i) Credit risk management
Credit risk is the risk that a counterparty to financial assets held by the Group is unable to fulfil its contractual
obligations, resulting in a financial loss for the Group.
(1) Trade and other receivables
Accounts receivable-trade expose the Group to customer credit risk. The Group manages that risk with aninternal audit process for investigating and approving customer credit on initial transaction. Furthermore,according to Customer Credit Management protocol, the Group also manages due dates and outstandingbalances by customer, in order to mitigate any concerns about collection due to deterioration in their financial
positions and other reasons.
Accounts receivables-other expose the Group to business partner credit risk, but these receivables are almost
entirely settled in the short term.
(2) Short-term investments
Short-term investments are recognized in cash and cash equivalents and other financial assets. They are highly
safe and liquid financial instruments that include negotiable deposit and jointly-managed money trust.
The carrying amount after impairment of financial assets in the consolidated statement of financial position
represents the Group's maximum exposure to the credit risk of financial assets. The Group is not exposed toexcessive credit risk associated with a particular customer that requires exceptional management.
The Group recognizes allowance for doubtful accounts for trade receivables and other financial assets measured
at amortized cost by estimating future credit losses in consideration of recoverability and significant increases incredit risk. The Group determines if credit risk has increased significantly by evaluating changes in default risk withreference to factors including the decline of counterparty results, and delinquency information.
Accounts receivable-trade are particularly important financial assets for the Group. The Group collectively
measures expected credit losses of the financial assets for the entire period to recognize the allowance for doubtful
accounts. In the following situations, that would adversely affect future cash flows, however, the Group measures
expected credit losses individually by treating each receivable as a credit-impaired financial asset:
・Where the customer has serious financial difficulties
・Where the customer defaults or becomes delinquent in accounts receivable payments despite repeated demands forpayment
・Where it is more likely that the customer will go into bankruptcy or face a situation that forces it to reconstruct its
business
The Group directly writes down the carrying amount if it does not reasonably expect to recover all or part of the
trade receivables, following an internal process of investigation and approval.
The Group is not exposed to excessive credit risk associated with a particular customer that requires exceptional
management. Furthermore, the customers of the Group are highly creditworthy and the credit risk is limited. As thecustomer of the Group are highly credit worthy, there are very few delinquent in accounts receivables and impact
towards impairments in accounts receivable-trade and allowance for doubtful accounts are insignificant.
- 54 -

The Group always sets its limit of allowance for doubtful accounts towards trade receivables that does not include
important financial elements at the amount of expected credit losses for the entire period.
The carrying amount of trade receivables that approximate collectively measured expected credit losses of thefinancial assets for the entire period to recognize the allowance for doubtful accounts as of April 1, 2016, March 31,2017 and 2018 are ¥217 million, ¥247 million and ¥363 million, respectively.
Changes in the related allowance for doubtful accounts are as follows:
2017

2018

Millions of yen

Millions of yen

Beginning balance

1

1

Increase during the year

1

2

－

－

Decrease during the year due to settlement for
intended purposes
Decrease during the year due to reversal

(1)

(1)

Other changes－－

Ending balance

12(ii) Liquidity risk management
Liquidity risk is the risk that an entity is unable to make a payment by its due date in performing its repayment
obligations for financial liabilities that become due.
The Corporate Unit of the Group renews the funding plans where necessary and maintains the level of liquidity on
hand above certain level, in order to manage liquidity risk.
The Group prepares appropriate funds for repayment, secures credit line from the financial institute where necessary,
constantly monitors the plans of cash flows and its performance in order to manage liquidity risk.
Financial liabilities by maturity date consist of the following:Transition date (As of April 1, 2016)
Carrying amountContract amountNot later than 1 year

Later than 1 year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Non-derivative financial liabilities
Trade and other payables

288

288

252

36

19,926

19,926

19,926－

20,214

20,214

20,17836

Carrying amountContract amountNot later than 1 year

Later than 1 year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Convertible bonds with stockacquisition rights scheduled forredemption within one year
Total
Fiscal year ended March 31, 2017

Non-derivative financial liabilities
210

210

197

14

210

210

197

14

Carrying amountContract amountNot later than 1 year

Later than 1 year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Trade and other payables
Total
Fiscal year ended March 31, 2018

Non-derivative financial liabilities
Trade and other payables
Total

274

274

274

－

274

274

274

－

- 55 -

Total amounts of commitment lines and their usage are as follows:
Transition date
As of April 1, 20162017

Millions of yen

Millions of yen

2018
Millions of yen

Total commitment lines

900

900

900

Drawn

－

－

－

900

900

900

Undrawn(iii) Exchange rate risk management

The Group also operates outside Japan, and therefore is exposed to the risks of exchange rate fluctuations associatedwith transactions conducted in foreign currencies etc.
As the impact of changes in exchange rate is insignificant, related information is omitted.
Furthermore, translation of the financial statements of the subsidiaries operating outside of Japan affects theamount of other comprehensive income. However, the Group does not regard this impact to be material.
3. Fair value of financial instruments
For financial instruments measured at fair value, their fair values are classified into Level 1 through Level 3 based on
the observability of inputs used for the measurement and their materiality.
Level 1: Quoted prices in active markets for identical assets or liabilities (unadjusted)
Level 2: Fair value determined using observable prices other than Level 1 for the asset or liability directly or indirectly
Level 3: Fair value determined using the valuation technique including unobservable inputs for the asset or liability(i) Measurement methods of the fair value
The Group adopts the following measurement methods for the main financial instruments measured at fair value:(Cash and cash equivalents, trade and other receivables, other financial assets (current), trade and other payables)
Carrying amounts approximate fair values because these are settled in the short-term.
(Other financial assets (non-current))
Fair value of non-marketable equity securities included in other financial assets is measured by appropriate
measurement methods such as measurement using recently available data.
Fair value of leasehold and guarantee deposits is measured by present value obtained through discounting yield tomaturity of long term bonds with high security by planned schedule of redemption.
(Other financial liabilities (non-current)
Carrying amounts approximate fair value of long-term installment accounts payable included in other financial
liabilities (non-current) because these are settled in the short-term.
(Bonds)Carrying amounts approximate fair values of bonds regarding convertible bonds with stock acquisition rights
scheduled for redemption within one year because these are settled in the short-term.

- 56 -

(ii) Financial instruments measured at amortized cost
The following tables present the measurement techniques for measuring the fair value of major financial
instruments measured at amortized cost. Financial instruments for which carrying amounts are a reasonableapproximation of fair value or financial instruments that are not material are not included in the tables.
(Millions of yen)Transition date
As of April 1, 2016
Carrying
amount2017

Fair value

Carrying
amount2018
Fair value

Carrying
amountFair value

Financial assets：
Financial assets measured atamortized cost
Leasehold and guarantee deposits

60

72

61

71

62

72

Total

60

72

61

71

62

72

(Notes)(i) The fair value of leasehold and guarantee deposits is classified into Level 2.
(ii) There were no significant transfers between Level 1, Level 2 and Level 3 during the year ended March 31, 2017 andMarch 31, 2018.

- 57 -

(iii) Financial instruments measured at fair value
The carrying amount and fair value of financial instruments measured at fair value are as follows:
Transition date (As of April 1, 2016)
Fair value

Carrying amount
Level 1

Level 2

Level 3

Total

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

90

－

－

90

90

824

－

－

824

824

915

－

－

915

915

Financial assets:
Financial assets measured at fairvalue through profit or loss
Other financial assets
Financial assets measured at fairvalue through other comprehensive
incomeOther financial assets
Total
Fiscal year ended March 31, 2017
Fair value
Carrying amount
Level 1

Level 2

Level 3

Total

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

145

－

－

145

145

1,863

－

－

1,863

1,863

2,008

－

－

2,008

2,008

Financial assets:
Financial assets measured at fairvalue through profit or loss
Other financial assets
Financial assets measured at fairvalue through other comprehensive
incomeOther financial assets
Total

Fiscal year ended March 31, 2018
Fair value

Carrying amount
Level 1

Level 2

Level 3

Total

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

305

－

－

305

305

2,039

－

－

2,039

2,039

2,344

－

－

2,344

2,344

Financial assets:
Financial assets measured at fairvalue through profit or loss
Other financial assets
Financial assets measured at fairvalue through other comprehensive
incomeOther financial assets
Total

Transfers between levels of the fair value hierarchy shall be recognized at the date of the event or change incircumstances that caused the transfer.
There were no significant transfers between Level 1, Level 2 and Level 3 during the year ended March 31, 2017 andMarch 31, 2018.

- 58 -

(iv) Assessment procedures
Assessment of financial instruments classified as Level 3 is measured by the responsible person in the Corporate
Unit. Responsible person conducts assessment and analysis of the assessment based on the Group's accounting
policies and procedures that is approved by the head of Corporate Unit. Results of assessment are than reviewed andapproved by the Head of Corporate Unit.
(v) Quantitative information with regards to financial instruments classified as Level 3
Fair value of financial asset classified as Level 3 is measured by responsible person in the Corporate unit, eachquarter using recently available data according to the Group accounting policy. Any changes in fair value andreasons are reported to the department manager, and to the President and CEO as necessary. Upon measurement of
the fair value, inputs are reasonably estimated and most suitable valuation model is selected based on the nature of
the asset. Determination of the suitable valuation model will be verified by the appropriate internal approval process,in order to ensure the validity.
Financial instruments classified as Level 3 are not subject to transfer between the fair value hierarchy levels.
(vi) Changes in financial instruments classified as Level 3 during the period
Changes in financial instruments classified as Level 3 are as follows:
2017

2018

Millions of yen

Millions of yen

Beginning balance

915

2,008

Total gains and losses
Profit or loss (Notes 1)

49

(4)

Other comprehensive income (Note 2)

611

(523)

Purchases

433

1,563

Sales

－

(700)

2,008

2,344

49

(4)

Ending balance
Changes of unrealized profit related topossessed assets posted at the end of reported
period (Note 1)(Notes)1. Gains and losses included in finance income or finance costs in the consolidated statement of profit or loss
2. Gains and losses included in financial assets measured at fair value through other comprehensive income in the
consolidated statement of comprehensive income.

- 59 -

32．Related parties
1. Principal subsidiaries and associates etc.
Please refer to "Appendix 1" for Principal subsidiaries and associates etc.
Information on transactions and balance of receivables or payables between the Group and related parties are omitted
as these information is not material.
2. Primary executive management compensation
Primary executive management compensation consists of the following:
2017

2018

Millions of yen

Millions of yen

Basic remuneration:
Directors(Excluding Outside Members of Board of Directors)

33

33

－

－

13

13

46

46

Members of the Audit and Supervisory Board(Excluding Outside Members of the Audit andSupervisory Board)
Outside Members of the Board of Directors
Outside Members of the Audit and Supervisory Board
Total

33. Subsequent events
There are no items to report.

- 60 -

34. First-time adoption
The Group prepared its consolidated financial statements in accordance with IFRS. The latest consolidated financial
statements prepared in accordance with Japanese-GAAP (the previously applied GAAP) are for the fiscal year ended
March 31, 2017. The date of transition is April 1, 2016.
1. Exemptions to IFRS 1
In principle, IFRS stipulates that an entity adopting IFRS for the first time shall apply IFRS retrospectively to priorperiods. However, IFRS 1 allows certain exemption from the adoption of certain aspects of IFRS. Impacts caused bythis exemption were adjusted in retained earnings and other items of owner's equity as of date of transition to IFRS.
The Group adopted the following exemptions.
・Business combinations
IFRS 1 permits an entity not to apply IFRS 3 "Business Combinations" retrospectively to business combinations that
occurred prior to the date of transition to IFRS. The Group elected to apply this exemption and did not apply IFRS 3
retrospectively to business combinations that occurred before the date of transition to IFRS.
・Exchange differences on translation of foreign operations
IFRS 1 permits the cumulative amount of exchange differences on translating foreign operations to be deemed to be
zero at the date of transition to IFRS. The Group elected to apply this exemption and deemed all cumulative
exchange differences on translating foreign operations as zero at the date of transition to IFRS.
・Share-based payment
IFRS 1 encourages but does not force an entity to apply IFRS 2 "Share-based Payment" to equity instruments grantedon or after November 7, 2002 and vested before the later of either date of transition to IFRS or January 1, 2015. The
Group elected not to apply IFRS 2 to equity instruments that were vested before the date of transition to IFRS.
・Decommissioning liabilities included in the cost of property, plant and equipment
IFRS 1 permits an entity to choose either of the following option for decommissioning liabilities included in the costof property, plant and equipment :(A) applying IFRS retrospectively from the time when the liability first arose or (B)measuring the decommissioning liabilities included in the cost of property, plant and equipment as of the date oftransition to IFRS. The Group chose option (B).
・Designation of previously recognized financial instruments
IFRS 1 permits an entity to designate financial instruments recognized prior to the date of transition to IFRS based on
relevant facts and circumstances that existed at the date of transition to IFRS. Furthermore, IFRS 1 permits an entity
to designate some of its financial instruments as instruments with changes of fair values measurable through othercomprehensive income.
The Group elected to apply this exemption and designates financial instruments recognized prior to the date oftransition to IFRS based on relevant facts and circumstances that existed at the date of transition to IFRS anddesignates some of its financial instruments as instruments with changes of fair values measurable through othercomprehensive income.
2. Mandatory exceptions to application of IFRS 1IFRS 1 prohibits the retrospective application of IFRS to "estimates", "derecognition of financial assets and financial
liabilities", "hedge accounting", "non-controlling interests", and "classification and measurements of financial assets".
The Group applies these items to these items prospectively from the date of transition.

- 61 -

3. Reconciliations
The reconciliations required to be disclosed in the first IFRS financial statements are described in the reconciliations
below. "Reclassification" includes items that do not affect retained earnings and comprehensive income, while"Classification and measurements of financial assets" includes items that affect retained earnings and comprehensive
income.
Reconciliation of equity as of April 1, 2016 (Transition date)(Millions of yen)Japanese-GAAP
Line item

Reclassification
AmountAmountRecognizedandmeasureddifference
AmountIFRSAmountNotes

Line item

AssetsAssetsCurrent assets

Current assets

Cash and deposits

14,4594,000

318,462

217

348

7

573

Securities

25,500(4,000)－Inventories

450

－

0

Accounts receivable

349

(349)

－

－

(2)

Other

76

0

1

77

(16)

(1)

1

－

－

(3)

41,051－

11

41,062

－

461

1

462

(6)

5,332

(461)

212

5,084

(6)

Accounts receivabletrade

Allowance for doubtful
accounts
Total current assets(1),(16)

equipment

Trade and other(16)

receivables

21,501(1)

Other financial assets

450

(16)

Inventories

66

－

－

66

Investment securities

915

(915)

－

－

Other

171

830

(27)

975

－

85

11

96

6,484

－

198

6,681

47,534－

209

47,743

assetsTotal assets

Other current assets

Total current assets
Non-current assets

Intangible assets

Total non-current

equivalents(2),(3),

Non-current assets
Property, plant andCash and cash

- 62 -

Operating lease assets
Property, plant andequipment
Intangible assets(4)(4),(5),(16)(4)

Other financial assets
Other non-current
assetsTotal non-current
assetsTotal assets

(Millions of yen)Japanese-GAAP
Line item

Reclassification
AmountAmountRecognizedandmeasureddifference
AmountIFRSAmountNotes

Line item
Liabilities and equity

Liabilities

Liabilities

Current liabilities

Current liabilities

Convertible bonds with

Convertible bonds withstock acquisition rights

stock acquisition rights

scheduled for

19,927(2)－

19,926scheduled forredemption within one

redemption within one

year

year

Accounts payable-trade

48

204

0

252

Income taxes payable

64

－

(64)

－

Other
Total current
liabilities

283

(204)

125

204

20,323－59

20,382(7),(16)

Trade and otherpayables(11)(7),(8),(11),(16)Other current liabilities
Total current
liabilities

Non-current liabilities

Non-current liabilities
－

36

－

36

(7)

Other payables

72

－

19

91

(9)

Provisions

Deferred tax liabilities

11

－

53

64

(10)

Deferred tax liabilities

Other

65

(36)

－

29

(7)

148

－

72

220

20,471－132

20,602

Asset retirement
obligations

Total non-current
liabilities
Total liabilities

liabilities
Total liabilities
EquityCapital stock

16,512－－

16,512

Capital surplus

16,448－(117)

16,331

Share capital(12)

Treasury shares

(0)

－

－

(0)

Stock acquisition rights

537

(537)

－

－

(14)

1

537

(1)

536

(13),(14)(6,433)－206(6,227)(17)

Capital surplus
Treasury shares

Total accumulated
incomeRetained earnings

liabilities
Total non-current

Net assets

other comprehensive

Other non-current

Other components ofequityRetained earnings
Total equity

27,06487－

attributable to owners

27,151of the parent
Non-controllinginterests
Total net assets
Total liabilities and net
assets

－

－

(10)

(10)

27,064－

77

27,14147,534－

209

47,743- 63 -(15)

Non-controllinginterests
Total equity
Total liabilities andequityReconciliation of equity as of March 31, 2017
(The latest financial statements under Japanese-GAAP)(Millions of yen)Japanese-GAAP
Line item

Reclassification
AmountAmountRecognizedandmeasureddifference
AmountIFRSAmountNotes

Line item

AssetsAssetsCurrent assets

Current assets

Cash and deposits
Accounts receivable-

10,3763,000

313,378(1),(16)

Cash and cash
equivalents(2),(3),

Trade and other

247

124

7

379

(16)

receivables

Securities

23,000(2,998)－20,002(1)

Other financial assets

Inventories

527

－

0

527

(16)

Inventories

125

(125)

－

－

(2)

118

(2)

4

119

(16)

(1)

1

－

－

(3)

34,391－

14

34,405trade

Accounts receivableother
Other
Allowance for doubtful
accounts
Total current assets

Total current assets

Non-current assets
Property, plant andequipment
Intangible assets
Investment securities
Other

Other current assets

Non-current assets
－

478

2

480

(6)

10,866(478)

216

10,603

(6)

66

－

－

66

1,361

(1,361)

－

－

164

1,282

622

2,069

－

78

10

88

Operating lease assets
Property, plant andequipment
Intangible assets(4)(4),(5),(16)(4)

Other financial assets

Other non-current
assetsTotal non-current
assetsTotal assets

12,457－850

13,307

46,848－864

47,712- 64 -

Total non-current
assetsTotal assets

(Millions of yen)Japanese-GAAP
Line item

Reclassification
AmountAmountRecognizedandmeasureddifference
AmountIFRSAmountNotes

Line item
Liabilities and equity

Liabilities

Liabilities

Current liabilities

Current liabilities

Convertible bonds with

Convertible bonds withstock acquisition rights

stock acquisition rights

scheduled for

－

－

－

scheduled for－redemption within one

redemption within one

year

year

Accounts payable-trade

21

176

0

197

Income taxes payable

152

－

(152)

－

(7),(16)

Trade and otherpayables(11)(7),(8),

320

(176)

226

370

492

－

75

567

－

14

－

14

(7)

Other payables

73

－

18

91

(9)

Provisions

Deferred tax liabilities

14

－

261

275

(10)

Deferred tax liabilities

Other

43

(14)

－

29

(7)

130

－

279

408

622

－

353

975

Other
Total current
liabilities(11),(16)Total current
liabilities

Non-current liabilities
Asset retirement
obligations

Total non-current
liabilities
Total liabilities

Non-current liabilities

liabilities
liabilities
Total liabilities
EquityCapital stock

26,744－－

26,744

Capital surplus

26,680－(184)

26,495

Treasury shares

(0)

－

－

(0)

Stock acquisition rights

12

(12)

－

－

(14)

Share capital

12

12

407

432

(13),(14)(7,222)－319(6,903)

(17)

－

－

541

46,768(12)

Capital surplus
Treasury shares

Total accumulated
incomeRetained earnings

Other non-current
Total non-current

Net assets

other comprehensive

Other current liabilities

Other components ofequityRetained earnings
Total equity
attributable to ownersof the parent

Non-controllinginterests
Total net assets
Total liabilities and net
assets

－

－

(31)

(31)

46,226－511

46,737

46,848－864

47,712- 65 -(15)

Non-controllinginterests
Total equity
Total liabilities andequityNotes to reconciliation of equity
1. Presentational reclassification of cash and deposits
Time deposits with deposit terms of over three months, which were presented as "cash and deposits" under JapaneseGAAP are reclassified as "other financial assets (current)" under IFRS.
Furthermore, bonds with redemption period with term of under three month, which were presented as "securities" underJapanese-GAAP are reclassified as "cash and cash equivalent" under IFRS.
2. Presentational reclassification of trade and other receivables"Accounts receivable-trade" and "accounts receivable-other", which were presented separately as current assets underJapanese-GAAP are reclassified as "trade and other receivables" under IFRS
3. Presentational reclassification of allowance for doubtful accounts"Allowance for doubtful accounts (current)", which was presented separately under Japanese-GAAP is deducted directlyfrom "trade and other receivables" under IFRS and is presented in net amounts.
4. Presentational reclassification of other financial assets (non-current)"Investment securities", which were presented separately and "lease and guarantee deposits" presented as "other" ininvestments and other assets under Japanese-GAAP are transferred and presented as "other financial assets (non-current)".
Furthermore, "lease and guarantee deposits" that was measured by the original amount under Japanese-GAAP ismeasured by the fair value at the beginning under IFRS. It will be measured by amortized cost. Translation adjustments
are posted as "other non-current assets" as the rent paid in advance and the Group recognizes both rent and interest
income over time.
5. Non-traded investments in equity instruments
Non-traded investments presented as investment securities under Japanese-GAAP was deemed difficult to reliably
measure the quoted prices in active market and acquisition cost was used to evaluate its value. Under IFRS, fair value isused to measure the value of non-traded investments, affecting the amount of "other financial assets (non-current)".
6. Reconciliation of recorded amount in property, plant and equipment
Assets for rent, which was presented as "property, plant and equipment" under Japanese-GAAP is renamed to "operatinglease assets" in non-current assets and presented separately under IFRS.
The Group mainly used declining-balance method for the purpose of depreciating property, plant and equipment(excluding lease assets). However, the Group adopted straight-line method under IFRS to depreciate property, plant andequipment.
Furthermore, the Group revised the useful lives for some of its property, plant and equipment.
7. Presentational reclassification of trade and other payables
Accounts payable-trade that was presented separately as current liabilities and accounts payable-other that was presented
as "other" of current liabilities under Japanese-GAAP are transferred and presented as "trade and other payables" under
IFRS.
Long-term account payable-installment purchase that was presented as "other" of non-current liabilities is transferredand presented as "other payables" of non-current liabilities under IFRS.
8. Unused paid leaves
Unused paid leaves that were not accounted for under Japanese-GAAP are recorded as "other current liabilities" under
IFRS.
9. Provisions
Asset retirement obligation that was presented separately as non-current assets under Japanese-GAAP is transferred andpresented as "provisions".

- 66 -

10. Temporary difference caused by reconciliation of IFRSAs a result of adoption of other IFRS, temporary differences caused and deferred tax liabilities are recognized by theGroup.
11. Levies
Taxes such as Size-based Business Tax (capital base), Inhabitant Tax (flat rate) and Fixed Asset Tax were expensed
across the fiscal year under Japanese-GAAP. Under IFRS the timing of when to recognize the liabilities related to thepayment of aforementioned levies are recognized according to the event obligating the payment.
Furthermore, accrued tax (Size-based Business Tax capital base) that was presented as "income taxes payable" ispresented as "other current liabilities" under IFRS.
12. Deduction of share issuance fee from the capital
Transaction fees related to issuance of financial assets of the Company were processed as profit or loss under JapaneseGAAP. Under IFRS, the relevant fees are deducted directly from the capital surplus.
13. Exchange differences on translation of foreign operations
The Group elected to apply this exemption and wholly reclassified all cumulative exchange differences at the date oftransition to IFRS to retained earnings.
14. Reclassification of other components of equity"Foreign currency translation adjustments", "valuation difference on available-for-sale securities" and "stock acquisitionrights", which were presented separately under Japanese-GAAP, are reclassified to "other components of equity".
15. Attribution of comprehensive income to non-controlling interest
The parent was covering the deficit balance of the non-controlling interest under Japanese-GAAP. Under IFRS, thedeficit balance is attributable to owner of the parent and non-controlling interest.
16. Difference of range of consolidation
Reconciliations are made to adjust the difference in range of consolidated subsidiaries under Japanese-GAAP and IFRS.
Furthermore, subsidiary with no significance was not included in the range of consolidation under Japanese-GAAP.
However, the relevant subsidiaries are included in the range of consolidation under IFRS.
17. Adjustments to retained earnings
Transition date
As of April 1, 20162017

Millions of yen

Millions of yen

Adjustments to share issuance fee

117

183

Adjustments to property, plant and equipment

194

200

1

1

Adjustments to levies

(43)

(48)

Adjustments to unused paid leaves

(11)

(16)

Other

(9)

40

Cumulative translation differences on foreign operations

Subtotal

249

359

Deferred tax assets and deferred tax liabilities

(53)

(71)

Adjustments to non-controlling interest

10

31

206

319

Total

- 67 -

Reconciliation of profit or loss and comprehensive income for the year ended March 31, 2017
(The latest financial statements under Japanese-GAAP)(Millions of yen)Japanese-GAAP

Reclassification

IFRSLine item

AmountAmountNotes

Line item

Net sales

1,650

－

10

1,660

(10)

Revenue

Costs of sales

(571)

－

(16)

(587)

Gross profit

1,079

－

(7)

1,072

(903)

－

2

(901)

(1,348)－(13)(1,361)

Research anddevelopment expenses

AmountRecognizedandmeasureddifference
AmountOther selling, generaland administrative
expenses
Total selling, general andadministrative expenses(2,251)(11)－(1),(3),(7),(10)Gross profit

1,234

(735)

499

－

(749)

742

(7)

(10)
(1),(2),(8),(10)

485

(10)

(697)

(1,242)－－(2)Non-operating expenses

(853)

853

－

－

(2)

0

(0)

－

－

(2)

Extraordinary loss

(0)

0

－

－

(104)

95

(9)

(783)

－

135

(648)

Income taxes-current

(8)

1

(42)

(49)

Income taxes-deferred

1

(1)

－

－

(789)

－

92

(697)

Other income
Other expenses
Operating profit (loss)

Extraordinary income－

expensesadministrative expenses(2),(8),

1,242

59

and administrative
Total selling, general and(1,172)50

Other selling, general(10)

Non-operating income

9development expenses(3),(7),

Operating profit (loss)－

Research and(1),(7)(2,262)－

Cost of sales(2)(2),(4),(10)(2),(5)

Finance income
Finance costs

Net income (loss) before
provision for income

Profit (loss) before tax

taxes

Net income (loss)(6),(7)

Income tax expense
Profit (loss)
Profit (loss) attributable
to

－

(789)

113

(676)

－

－

(21)

(21)

(789)

789

－

－

Owners of parent

Net income (loss)
attributable to noncontrolling interests
Net income (loss)
attributable to
CYBERDYNE,INC.

- 68 -(9)

Non-controllinginterests

(Millions of yen)Japanese-GAAP
Line item
Net income (loss)

Reclassification
Amount(789)

AmountRecognizedandmeasureddifference
AmountAmount

92

(697)

－

IFRS
Notes

Line item
Profit (loss)

Other comprehensive

Other comprehensive

incomeincomeItems that will not bereclassified to profit orloss

Valuation difference on
available-for-saleFinancial assets measured
9

408

－

417

(4)

securities

at fair value through othercomprehensive income
Items that may bereclassified to profit orloss

Foreign currencytranslation adjustment

Exchange differences on
3

(0)

－

2

translation of foreign
operations

Total accumulated
other comprehensive

Total other
12

408

－

420

comprehensive income,incomeTotal comprehensive
incomenet of tax
(778)

500

－

(278)

Comprehensive income
Comprehensive income(Comprehensive income

attributable to：attributable to)
CYBERDYNE,INC.
Non-controlling interests

(778)

－

521

(256)

－

－

(21)

(21)

(778)

－

500

(278)

- 69 -

Owners of parent(9)

Non-controllinginterests
Comprehensive income

Notes to reconciliation of profit or loss and comprehensive income
1. Changes of depreciation method and useful lives
The Group mainly used declining-balance method for the purpose of depreciating property, plant and equipment.
However, the Group adopted straight-line method under IFRS to depreciate property, plant and equipment. Following the
aforementioned changes, the Group reconciled the cost of sales as well as other selling, general and administrative
expenses. Furthermore, Group recalculated the gain (loss) on sale of non-current assets as well as the loss on reduction of
non-current assets as it was calculated by the declining-balance method.
The Group also revised the useful lives for some of its property, plant and equipment.
2. Reconciliation to the presented items
The Group applied reconciliations to the items presented as "non-operating income", "non-operating expenses","extraordinary income" and "extraordinary expenses" under Japanese-GAAP. Namely, the aforementioned items that was
related to gain or loss are posted as "finance income" and "finance cost", while other items are posted as "other income"and "other expenses".
3. Unused paid leaves
Unused paid leaves that were not accounted for under Japanese-GAAP are recognized as personnel expenses under IFRS.
4. Non-traded investments in equity instruments
Acquisition cost was posted as the value of non-traded investments under Japanese-GAAP. Under IFRS, if the non-tradedinvestment was classified as equity instrument measured at fair value through comprehensive income according to IFRS
9, it shall be measured by fair value regardless of marketability and changes shall be recognized through comprehensive
income. If the non-traded investment was classified as equity instrument measured at fair value through profit or loss, it
shall be measured by fair value regardless of marketability and changes shall be recognized through profit or loss.
5. Deduction of share issuance fee from the capital
Transaction fees related to issuance of financial assets of the Company were processed as profit or loss under JapaneseGAAP. Under IFRS, the relevant fees are deducted directly from the capital surplus.
6. Income taxes-current and income taxes-deferred
Under the Japanese-GAAP, income taxes-current and income taxes-deferred were presented separately. Under IFRS,
these are both presented as income tax expenses. In pursuant to the adoption of IFRS, the Group reconsiders thepossibility of recollecting all deferred tax assets.
Furthermore, due to the adoption of IFRS, taxes-effect as well as other taxes-effect was recognized and measured on
various reconciliation, changing the value of the income tax expenses.
7. Levies
Taxes such as Size-based Business Tax (capital base), Inhabitant Tax (flat rate) and Fixed Asset Tax were expensed
across the fiscal year under Japanese-GAAP. Under IFRS the timing of when to recognize the liabilities related to thepayment of aforementioned levies are recognized according to the event obligating the payment.
8. Government grants to assets
Government grants to assets was wholly presented as subsidy income as well as reduction on loss of non-current assets
under Japanese-GAAP. Under IFRS, these items are presented net.
9. Attribution of comprehensive income to non-controlling interest
The parent was covering the deficit balance of the non-controlling interest under Japanese-GAAP. Under IFRS, the deficit
balance is attributable to owner of the parent and non-controlling interest.
10. Difference of range of consolidation
Reconciliations are made to adjust the difference in range of consolidated subsidiaries under Japanese-GAAP and IFRS.
Furthermore, subsidiary with no significance was not included in the range of consolidation under Japanese-GAAP.
However, the relevant subsidiaries are included in the range of consolidation under IFRS.

- 70 -

Reconciliation of cash flows for the fiscal year ended March 31, 2017
(The latest financial statements under Japanese-GAAP)
There are no material differences between the consolidated statement of cash flows that was disclosed inaccordance with Japanese-GAAP and that which was presented in accordance with IFRSs.

This is an English translation of part of the Annual Securities Report (有価証券報告書).
Of the pages of Annual Securities Report translated in this documents, "Part I
Information on the Company V. Consolidated Financial Statements and Other
Information 1. Consolidated Financial Statements" were audited by Deloitte Touche
Tohmatsu LLC.
Annual Securities Report was filed to the Director of the Kanto Local Finance Bureau
via Electronic Disclosure for Investor's NETwork ("EDINET") pursuant to the
Financial Instruments and Exchange Act of Japan.

- 71 -

(Unaudited)[Appendix 1](Principal subsidiaries and associates etc.)
Principal subsidiaries and associates etc. are as follows:
Name

Place ofincorporation andoperation

CapitalPrincipal businesses

Voting rights(%)（Subsidiaries）

Cyberdyne Care
Robotics GmbHCYBERDYNE USA Inc.

CYBERDYNE & BROOKS,Inc.

Suzuka RoboCare Center Co.,Ltd.
Shonan RoboCare Center Co.,
Ltd.
Oita RoboCare Center Co.,
Ltd.

Functional improvement/regeneration
Germany€ 25,000

treatment service with HAL and sales of

75.1

HAL

Management and acceleration of theUSA

US$ 100,000

USA

US$ 300,000 treatment service with HAL and sales ofCompany's business in the U.S.

100.0

Functional improvement/regeneration
66.7

HAL

Japan

¥3 million Training service business with HAL

100.0

Japan

¥3 million Training service business with HAL

100.0

Japan

¥3 million Training service business with HAL

100.0

Other 5 companies(Associates accounted by theequity method)CYBERDYNE Omni
Networks, INC.

Shisei Datum Ltd.

Communication business and distribution ofJapan¥160 million

communication devices on IoH/IoT in the

49.0

field of Cybernic and other related services.
Japan¥100 million- 72 -

Design/development and manufacture of
medical electric blood pressure monitor

31.6

(Unaudited)[Appendix 2](Information on differences in primary items in relations to outline of operating results etc.)
Details of differences between consolidated financial statements under IFRS and consolidated financial statements underJapanese-GAAP are as follows:
The latest financial statements (From April 1, 2017 to March 31, 2018)
Impact to profit as well as comprehensive income following the transition to IFRS is as follows:
Reconciliation items

Impact to profit as well as

Details

comprehensive income
Millions of yen

Amount posted for property, plant and

(1)

(1)

(4)

(2)

(103)

(3)

21

(4)

Levies

3

(5)

Other

(0)

equipment
Unused paid leaves
Non-traded investments in equity
instruments
Investment accounted for using equity
methodTotal reconciliation to profit(84)

Non-traded investments in equity(386)

instruments
Total reconciliation to comprehensive

(3)

(470)

incomeImpact to retained earnings following the transition to IFRS is as follows:
Reconciliation items

Impact to retained earnings

Details

Millions of yen
Amount posted for property, plant and

200

(1)

(21)

(2)

45

(3)

21

(4)

Levies(44)(5)

Adjustments to share issuance fee

183

(6)

Other

(5)

equipment
Unused paid leaves
Non-traded investments in equity
instruments
Investment accounted for using equity
methodSubtotal

379

Deferred tax assets and deferred tax(72)

liabilities
Adjustments to non-controlling

34

interest
Total reconciliation to retained341

earnings- 73 -

(1) Changes of depreciation method and useful lives
The Group mainly used declining-balance method for the purpose of depreciating property, plant and equipment. However,the Group adopted straight-line method under IFRS to depreciate property, plant and equipment. Following the
aforementioned changes, the Group reconciled the cost of sales as well as other selling, general and administrative expenses.
Furthermore, the Group recalculated the gain (loss) on sale of non-current assets as well as the loss on reduction of noncurrent assets as it was calculated by the declining-balance method.
The Group also revised the useful lives for some of its property, plant and equipment.
(2) Unused paid leaves
Unused paid leaves that were not accounted for under Japanese-GAAP are recognized as personnel expenses under IFRS.
(3) Non-traded investments in equity instruments
Acquisition cost was posted as the value of non-traded investments under Japanese-GAAP. Under IFRS, if the non-tradedinvestment was classified as equity instrument measured at fair value through comprehensive income according to IFRS 9, it
shall be measured by fair value regardless of marketability and changes shall be recognized through comprehensive income.
If the non-traded investment was classified as equity instrument measured at fair value through profit or loss according to
IFRS 9, it shall be measured by fair value regardless of marketability and changes shall be recognized through profit or loss.
Furthermore, the Group posted ¥100 million from gain on sale of non-traded investment securities in extraordinary
income under Japanese-GAAP. Under IFRS, it is recognized as retained earnings and it is not posted as profit or loss.
(4) Investment accounted for using equity method
Under Japanese-GAAP, goodwill to associates was recognized as share of profit of investment accounted for using theequity method amortized over the period during which the influence of the goodwill shall apply. Under IFRS, goodwill is
not amortized.
As such, share of profit of investment accounted for using the equity method under IFRS is ¥21 million less to the same
item under Japanese-GAAP(5) Levies
Taxes such as Size-based Business Tax (capital base), Inhabitant Tax (flat rate) and Fixed Asset Tax were expensed acrossthe fiscal year under Japanese-GAAP. Under IFRS the timing of when to recognize the liabilities related to the payment of
aforementioned levies are recognized according to the event obligating the payment.
(6) Deduction of share issuance fee from the capital
Transaction fees related to issuance of financial assets of the Company were processed as profit or loss under JapaneseGAAP. Under IFRS, the relevant fees are deducted directly from the capital surplus.

- 74 -